Sapura Energy proposes rights issue to raise rm4b
Published on: Saturday, August 25, 2018

Kuala Lumpur: Sapura Energy Bhd has proposed a rights issue to raise up to RM4 billion to strengthen the group's business and financial position, as well as create better value for its shareholders.In a statement on Friday, Sapura Energy said of the amount, up to RM3 billion would be raised through the rights issue of ordinary shares with free warrants and up to RM1 billion through the rights issue of Islamic redeemable convertible preference shares.

In addition to the rights issue exercise, the group is evaluating various options which might involve the listing of its Exploration & Production business and exploring a possible strategic partnership for its Drilling business.

President and Group Chief Executive Officer Tan Sri Shahril Shamsuddin said Sapura Energy is in a strong growth phase today and is determined to capitalise on the emerging opportunities.

"The rights issue will enable us to strengthen our balance sheet and continue with our growth momentum which includes bidding for and executing higher value projects globally," he added.

The group is actively venturing into key regions, including the Middle East, Africa, Latin America, Caspian and Mediterranean, as well as Southeast Asia and Australia.

To-date, it has secured contract wins of RM4.5 billion and its order book has increased to RM16.7 billion with contract wins across Mexico, Brazil, India, Australia and Malaysia, since the start of the financial year.

The proposed rights issue is subject to shareholders' approval at an Extraordinary General Meeting to be convened later. –Bernama


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