MALAYSIA’S biggest oil and gas service organization Sapura Energy Bhd on Wednesday said it would move a 50 percent stake in its upstream business to Austria’s OMV.
The proposed deal depends on an enterprise value of US$1.6 billion, Sapura said, adding the organizations have consented to proceed with chats on a select premise.
Sapura shares ascended as much as 4.5 percent on Wednesday after the declaration, which came a long time after the firm said it was planning to raise RM4 billion (S$1.33 billion) through a proposed rights issue, in an offer to support its budgetary position and pare down debt.
“We have investigated all alternatives including the potential listing of our upstream business,” ShahrilShamsuddin, Sapura’s president and CEO, said in an announcement. “The invitation to went into this key associated with a leading oil and gas player serves our objectives and desires better while giving sureness in timing and valuation.”
Sapura has a market capitalization of about US$484.5 million, while OMV has a valuation of about US$16.9 billion, Thomson Reuters information appears.
A week ago, OMV’s head of investigation and production, Johann Pleininger, told Reuters in a meeting it had plans to grow its investigation business with a securing in Southeast Asia before the finish of 2018.
Prior this year, the Austrian firm extended its operations in New Zealand and the United Arab Emirates, to adjust geopolitical risks it faces in its tasks in nations like Russia, Libya, and Yemen. OMV has put aside 10 billion euros (S$15.9 billion) for acquisitions until 2025.
Sapura’s MrShahril said the strategic partnership with OMV will supplement their proceeded with procedure “to develop our portfolio and extend our acreage position”.REUTERS