Date: 25.09.2018.

Kuala Lumpur, 25 September 2018

Sapura Energy Berhad (“Sapura Energy” or “The Group”) has obtained firm support from two major shareholders, Permodalan Nasional Berhad (“PNB”) and Sapura Technology Sdn Bhd (“Sapura Technology”), by means of letters of irrevocable undertaking for their proposed issuance of rights shares with warrants and rights issue of Islamic redeemable convertible preference shares (“RCPS-i”).

The Group has received commitments from Maybank Investment Bank and Credit Suisse to underwrite any remaining open portion of rights shares not undertaken by shareholders.

The rights issue entails raising up to RM4 billion, of which up to RM3 billion will be through the rights issue of ordinary shares with free warrants and up to RM1 billion through the rights issue of RCPS-i.

PNB and its associated funds (“PNB Group”) will subscribe to its full entitlement rights shares with warrants, and excess shares with warrants not taken up, resulting in the PNB Group having shareholdings of 40 per cent of the post-rights enlarged share capital. In addition, the PNB Group will subscribe in full to the RCPS-i of RM1 billion. Upon completion of the rights issue, the PNB Group may emerge as the largest single shareholder.

Sapura Technology, a direct shareholder, will subscribe to the rights issue for a minimum amount of RM300 million as announced earlier.

Tan Sri Dato’ Seri Shahril Shamsuddin, President and Group Chief Executive Officer of Sapura Energy, said: “We are appreciative of PNB’s readiness to embark on our next phase of growth and its confidence in our prospects for the future against the backdrop of improving industry conditions. Sapura Energy remains committed to delivering greater value and creating a sustainable future for our shareholders.”

The Group had implemented a strategic plan to strengthen its core businesses, boost its financial position and create better value for its shareholders.

In tandem with the rights issue, Sapura Energy had recently entered into an exclusive negotiation with a major Austrian oil and gas company, OMV AG. The strategic partnership will result in OMV AG acquiring 50 per cent of Sapura Energy’s upstream business.

“The newly injected capital from the rights issue will enable the Group’s businesses to pursue its plans to bid for and execute higher value projects in key regions, and at the same time, our joint venture with OMV AG will enable us to further expand our global footprint, build our acreage position, create further opportunities for our Services segment and develop local talent,” said Shahril.

Both the corporate exercises form key components of the Group’s continuing growth strategy. Once completed, the Group will have a sustainable capital base to support its operations and global growth momentum.