KUALA LUMPUR (July 8): Sapura Energy Bhd (KL:SAPNRG) said on Tuesday it will convene an extraordinary general meeting on July 30 to seek shareholders’ approval for its proposed regularisation plan.
The approval is one of the steps the oil-and-gas services firm needs to take in order to exit the Practice Note 17 (PN17) status after Bursa Malaysia approved key components of the plan — capital reconstruction, debt restructuring, fundraising, and an exemption from a mandatory general offer.
The proposals are “decisive steps” for Sapura Energy to be reshaped into a resilient, profitable company, its group chief executive officer Muhammad Zamri Jusoh said in a statement.
“By addressing legacy liabilities, enhancing our equity base and securing strategic support, we are rebuilding the foundation for future profitability and shareholder returns,” he said. “We recommend all shareholders to vote in favour of these proposals.”
The measures entails capital reduction to eliminate accumulated losses and improve the capital structure, alongside a 20-to-one share consolidation to reduce the number of shares in circulation with the aim of enhancing share price and reducing volatility.
Sapura Energy’s debt will also be restructured, cutting total borrowings to about RM5.6 billion from RM10.8 billion and the annual interest costs by more than RM500 million or around 60%.
The government of Malaysia, meanwhile, will subscribe up to RM1.1 billion in redeemable convertible loan stocks, and funds raised will be used to settle outstanding payments to domestic vendors.
The proposed exemption seeks to relieve the government from the obligation to undertake a mandatory general offer in the event of a full conversion of the loan stocks.
Sapura Energy’s largest shareholder is Permodalan Nasional Bhd (PNB), which holds a 40.43% stake through Amanah Saham Nasional Bhd. The second-largest shareholder is Sapura Holdings Sdn Bhd, with a 9.18% stake.
Sapura Holdings is owned by Datuk Shahriman Shamsuddin and his brother, Tan Sri Shahril Shamsuddin. The brothers are in the midst of a family feud, which came to light after Shahriman filed a petition in September 2024 to wind up Sapura Holdings, the family's private investment vehicle. Shahriman has claimed this is necessary for a fair distribution of assets, but Shahril is opposing it. The case is now in court.
On June 25, Shahriman resigned from his post as Sapura Energy’s non-independent and non-executive director. He said his resignation was due to other commitments.
Shares of Sapura Energy were mostly unchanged on Tuesday at 3.5 sen, giving the company a market capitalisation of RM643 million.