Date: 23.01.2019.

Sapura Energy Berhad (Sapura Energy) has successfully raised approximately RM4 billion from its rights issue exercise which closed on 16 January 2019. The Group received 8,138,379,841 of valid acceptances and excess applications for its rights shares with warrants, representing a subscription rate of 81.5 per cent. For its Islamic redeemable convertible preference shares (RCPS-i), the Group saw just above 100 per cent of valid acceptances and excess applications.

The remaining portion of the rights shares of 1,848,545,304 will be fully taken up by appointed joint underwriters -- Maybank Investment, CIMB Investment Bank and RHB Investment Bank.

Permodalan Nasional Berhad and its associated funds (PNB) have emerged as the single largest shareholder with 40 per cent shareholding in Sapura Energy. Sapura Technology Sdn Bhd will continue to be a significant shareholder, being the second largest after PNB, with a direct and indirect shareholding of 16.3 per cent. Minority shareholders comprising both local and foreign participation will hold a total of 42.2 per cent.

The participation from PNB and other shareholders provide a strong equity base for the Group to chart and execute its growth strategy to deliver long-term prospects.

Sapura Energy embarked on two corporate exercises to ensure the Group has sufficient capital to grow and operate on a stronger balance sheet. In tandem with the rights issue, the Group will be forming a 50:50 strategic partnership with OMV, which will result in Sapura Energy receiving cash proceeds of up to USD975 million. An Extraordinary General Meeting to seek shareholders’ approval for the proposed strategic partnership is set for 28 January 2019.

Proceeds from both the rights issue and the proposed strategic partnership with OMV will be utilised to repay the Group’s borrowings and for working capital. Upon the completion of both exercises, the Group’s borrowings will be reduced, and its gearing ratio is expected to drop significantly from 1.74x to 0.62x. Subsequently, the Group is expected to benefit from savings in finance cost of approximately RM314 million per annum. The stronger balance sheet will provide greater financial flexibility for the Group to deliver its growth plans.

Sapura Energy’s growth strategy continues to see fruition in the increasing number of contract wins. The successful rights issue comes amidst the Group’s contract wins to-date in FY19 of RM9.3 billion for its Engineering & Construction and Drilling businesses. The Group’s growing order book now stands at RM19.3 billion.

The rights shares with warrants and RCPS-i will be listed and quoted on the main market of Bursa on 29 January 2019.

Cautionary note: These materials are not an offer of securities for sale into the United States, Canada or Japan. The securities may not be offered or sold in the United States unless they are registered or exempt from registration. Any public offering of securities to be made in the United States will be by means of a prospectus that may be obtained from the Company and will contain detailed information about the Company and its management, as well as financial statements. The Company does not intend to register any portion of this Offering in the United States, or to conduct a public offering in the United States. No indication of interest, money or other consideration is being solicited by the distribution of this press release. Copies of this press release are not being, and should not be, distributed in or sent into the United States.This press release contains forward-looking statements. All statements other than statements of historical facts included in this press release, including, without limitation, those regarding our financial position, financial estimates, business strategies, prospects, plans and objectives for future operations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. Such forward-looking statements reflect our current view with respect to future events and are not a guarantee of future performance. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “aim”, “plan”, “forecast” or similar expressions and include all statements that are not historical facts.