KUALA LUMPUR (Oct 17): Practice Note 17 (PN17) company Sapura Energy Bhd’s shareholders greenlighted the proposal on the disposal of three drilling rigs to UK-based NKD Maritime Ltd for US$8.2 million (RM35.14 million) at the EGM.
The oil and gas service provider said the resolution was duly passed after 489 shareholders who collectively hold 8.63 billion shares in Sapura Energy (representing 99.96% of voting shares) voted for the disposal.
Meanwhile, 123 shareholders collectively holding 3.41 million shares (representing 0.04% of voting shares) voted against the proposal.
According to Sapura Energy’s circular to its shareholders, the group will utilise RM34.8 million disposal proceeds for the repayment of bank borrowings, while the remaining RM350,000 will be used for the disposal’s estimated expenses.
The group noted that the net proceeds of the disposal are required to be applied towards the repayment of its multi-currency facilities, pursuant to terms of an inter-creditor agreement.
“As at [Sept 5, 2022], the group has a total outstanding borrowing of RM11.09 billion. The proposed repayment of borrowings amounting to RM34.8 million is expected to result in interest savings of approximately RM1.2 million to RM1.8 million per annum, based on a range of interest rate, 3.4% to 5.2%,” it added.
AmanahRaya Trustees Bhd is the largest shareholder of Sapura Energy, holding a 40.03% stake, followed by Sapura Holdings Sdn Bhd (10.55%), and Jurudata Sdn Bhd (2.08%).
AmanahRaya Trustees is the trustee for the funds under Permodalan Nasional Bhd’s (PNB) management. The asset investment group on its website said it voted for the proposal.
Previously, three of Sapura Energy’s subsidiaries — Sapura Drilling T-19 Ltd, Sapura Drilling T-20 Ltd and Sapura Drilling Setia Ltd — inked agreements to sell the rigs to NKD Maritime as part of the group’s focus on long-term sustainability and improving its liquidity position, streamlining its operating model and providing greater flexibility for strategic growth.
“The rigs are either ageing or not technically competitive. Based on market demand, the company does see any financially viable prospects that could cater for the rigs to be reactivated in the foreseeable future.
“Therefore, the rights have a high probability of being stacked in the coming years, which exposes the company to more costs and risk of deterioration,” the group said in a filing dated Aug 19.
Shares in Sapura Energy ended unchanged at four sen on Monday (Oct 17), valuing the company at RM639.16 million.