Shareholders of Sapura Energy Berhad (Sapura Energy) overwhelmingly supported the proposed 50:50 strategic partnership with Austria’s OMV Aktiengesellschaft (OMV AG) at the Extraordinary General Meeting today. The 99.98 per cent approval from shareholders today gives certainty to the completion of the transaction.
The transaction is based on an enterprise value of up to RM6.6 billion, and will result in Sapura Energy receiving up to RM4.0 billion in cash and recognise a net gain of RM2.7 billion for the 50 per cent stake.
Sapura Energy will receive total cash proceeds of RM7.6 billion immediately from the rights issue and the strategic partnership with OMV. The cash proceeds will be substantially used to reduce the borrowings of the Group and its gearing ratio is expected to drop significantly from 1.74x to 0.62x. A portion of the cash proceeds raised will be used to fund the working capital requirements of the Group which is expected to increase in tandem with the growth in the order book recorded today. This, together with the savings in finance charges, is expected to positively contribute towards the Group’s future earnings.
“We are grateful for the tremendous support from our shareholders, which we believe demonstrates their confidence in our vision to move the business forward. This is the key milestone in completing the deal, which is good for the Group and for our shareholders,” said Tan Sri Shahril Shamsuddin, President and Group Chief Executive Officer, Sapura Energy Berhad.
“Through this partnership, we have gained a strong E&P partner in OMV. This partnership will provide a strong foundation for our continued growth strategy, which will see us expand our portfolio and acreage position,” said Tan Sri Shahril.
Sapura Energy is confident that the partnership with OMV will further unlock the value of the E&P business beyond monetary benefits. In addition, it will enable the sharing of expertise, knowledge and technology that would reduce the risks and capital requirements in exploration and development activities.
OMV AG is one of Austria’s largest listed industrial companies with annual group revenue of EUR 20 billion and a workforce of more than 20,000 employees. In Upstream, OMV AG has a strong base in Romania, Austria and a balanced international portfolio in the North Sea, the Middle East & Africa and Russia as further core regions.
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