Kuala Lumpur, 24 August 2018

• Proposed rights issue of up to RM4 billion
• Overall strategic plan aims to strengthen the Group’s core businesses, boost its financial position and create better value for shareholders
• Offers an opportunity for shareholders to participate in the Company’s equity potential as it enters its current phase of growth which has seen significant successes to-date
• The rights issue is subject to shareholders’ approval at an Extraordinary General Meeting

Sapura Energy Berhad (“the Group” or “Sapura Energy”) today proposed a rights issue as part of a broader strategic plan to strengthen the group’s core businesses, boost its financial position and create better value for its shareholders.

In addition to the rights issue exercise, the Group is evaluating various options which may involve the listing of its E&P business and exploring a possible strategic partnership for its Drilling business.

The exercise entails raising up to RM4.0 billion, of which up to RM3.0 billion will be through the rights issue of ordinary shares with free warrants and up to RM1.0 billion through the rights issue of Islamic redeemable convertible preference shares.

Tan Sri Dato’ Seri Shahril Shamsuddin, President and Group Chief Executive Officer, Sapura Energy Berhad, said: “Sapura Energy is in a strong growth phase today and we are 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.”

The Group is actively venturing into a larger addressable market in key regions including the Middle East, Africa, Latin America, Caspian and Mediterranean as well as Southeast Asia and Australia. To-date, the Group has secured contract wins of RM4.5 billion. The Group’s 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 rights issue offers an opportunity for all shareholders to participate in the Company’s equity potential as it enters its current phase of growth which has seen significant successes.

The Group is seeking participation for the exercise from all substantial shareholders and has since secured letters of support from Sapura Technology Sdn Bhd (“Sapura Technology”) and Permodalan Nasional Berhad (“PNB”).

Sapura Technology, a direct shareholder which holds 16%, has expressed its intent to participate in the rights issue for a minimum amount of RM300 million. Meanwhile, PNB has indicated its support for the exercise by committing to subscribe to its entitlement and is looking at the prospect of taking up excess shares up to an agreed amount to be determined later.

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

Riding the growth wave

Over the years, each of the Group’s three distinct businesses has grown considerably and established themselves as world-class players in their respective segments. Each of these business segments have differing aspirations, capital requirements and unique risk-reward profiles, which prompted the strategic plan.

“Our businesses have grown to such a scale that it is now an opportune time for Sapura Energy to execute our strategic plan that will allow each of the businesses to have access to capital markets to pursue their growth aspirations and ride on the growth wave,” said Tan Sri Shahril.

“We aim to further unlock the value of our businesses for our shareholders through a concerted effort to deleverage the Group, enhance our equity base and ensure our businesses are well capitalised as they chart their own growth path,” Tan Sri Shahril explained.