KUALA LUMPUR (Dec 10): Sapura Energy Bhd (KL:SAPNRG) said it has completed the divestment of its 50% stake in SapuraOMV Upstream Sdn Bhd to TotalEnergies Holdings SAS for US$756.9 million (RM3.35 billion).
The transaction, executed via its wholly-owned subsidiary Sapura Upstream Assets Sdn Bhd (SUA), includes US$581.9 million in sale proceeds and US$175 million for the release of pledged SapuraOMV shares.
“This strategic initiative underscores our commitment to Sapura Energy’s long-term reset and debt restructuring plan; this divestment streamlines our portfolio and enables us to focus on our core capabilities, namely, to deliver safe and innovative solutions to the energy industry,” Sapura Energy newly appointed interim chairman Shahin Farouque Jammal Ahmad said in a statement on Tuesday.
The disposal came after Sapura Energy last month accepted the terms and conditions set forth by its multi-currency financing creditors for the proposed disposal, one of which was that the sale proceeds must be held in a segregated account held by SUA at either Malayan Banking Bhd (KL:MAYBANK) or Maybank Islamic Bank Bhd
SUA will then create a first ranking fixed charge or priority claim over the net sale proceeds and the segregated account in favour of Maybank Investment Bank as the security agent for the multi-currency financing creditors
Most of the proceeds from the sale has been allocated for the repayment of SapuraOMV-related debt at RM2.25 billion, with the remaining RM247.1 million allocated to other liabilities or working capital as part of the group’s debt restructuring exercise, Sapura Energy noted.
It added that the breakdown proportion of the amount to be repaid to creditors can only be determined after sanctioning of the schemes by the High Court and upon finalisation of the proposed regularisation plan, details of which will be disclosed and announced later on Bursa Securities.
Sapura Energy bought SapuraOMV for US$898 million back in 2014 from Newfield Exploration Co, before selling half its stake to OMV AG in 2018 for up to US$975 million.
SapuraOMV’s assets include stakes in Sarawak’s SK408 and SK310 blocks, with the Jerun gas field in SK408 achieving first gas in July 2024. The company also holds exploration licences in Malaysia, Australia, New Zealand and Mexico.
As at end-July, Sapura Energy had cash of RM1.72 billion on current borrowings of RM10.94 billion, and current trade and payables of RM5.34 billion. Its order book stands at RM5.9 billion. Its accumulated losses amounted to RM17.24 billion, which resulted in a shareholders’ deficit of RM3.69 billion, up from RM3.01 billion a year before.
Shares in Sapura Energy closed half a sen or 16.67% higher at 3.5 sen onTuesday, valuing the company at RM643.16 million.