KUALA LUMPUR: Sapura Energy Bhd has gotten investors’ endorsement for its proposed rights issue to raise RM4 billion to trim its obligations.
Investors cast a ballot overwhelmingly to subscribe to the group’s rights issue and supports its development plan at the extraordinary general meeting(EGM) today.
Permodalan Nasional Berhad (PNB) reconfirmed its help to subscribe in full to its rights imparts to free warrants privilege and additionally overabundance rights shares, which may result in it having a 40% shareholding of the group’s extended share capital post-rights issue.
Investors passed every one of the six goals related to the proposed rights issue, which involves raising up to RM4 billion, as per an announcement from Sapura Energy.
Its president and Group CEO Shahril Shamsuddin said: “We are humbled by the support from our investors. The positive outcomes show that investors are presently completely acquainted with the group’s development prospects, which will bring better returns and advantages time.”
Sapura Energy is additionally making process with its proposed key organization with Austria-based OMV.
The announcement said continues from both the rights issue and the proposed key association with OMV would be used to compensate the group’s borrowings and for working capital.
The endless supply of the two activities, borrowings were relied upon to be lessened from RM16.4 billion as at 31 Jan 2018 to RM9.8 billion, in this way bringing down outfitting proportion fundamentally from 1.74x to 0.62x, it said.
In this manner, the group is relied upon to profit by investment funds in the back expense of around RM320 million.
The balance sheet is relied upon to give more prominent financial flexibility to the group to convey its marketable strategies.
According to the announcement, investors voted overwhelmingly for the goals that required an exception for PNB to make an obligatory takeover offer in perspective of its developed shareholding.
What’s more, investors supported the proposed executive share option scheme.
As of late, Sapura Energy reinforced its quality in Mexico and Malaysia with new contract wins, esteemed at around RM1.75 billion, from Hokchi Energy, ENI Mexico and for Pan Malaysia Underwater Services.
Likewise, the group wound up one of the most recent participants into Saudi Aramco’s Long-Term Agreement (LTA) program, a standout amongst the most sought-after in the business.
As an LTA temporary worker, Sapura Energy can take an interest in offers for engineering, procurement, fabrication, transportation and installation contracts by Saudi Aramco.