By FARA AISYAH
Shareholders of Sapura Energy Bhd has approved the proposed US$975 million (RM4 billion) acquisition of 50% stake in Sapura Upstream Sdn Bhd by Austria’s OMV Aktiengesellschaft (OMV AG).
The deal, which provides Sapura Energy with RM2.7 billion in net gains, was approved in an EGM held yesterday.
In a statement, Sapura Energy said based on an enterprise value of up to RM6.6 billion, the oil and gas firm will receive up to RM4 billion in cash from the rights issuance and the net gain of RM2.7 billion for the 50% stake.
The cash will be utilised to reduce the borrowings of the group, with its gearing ratio also expected to drop from 1.74 times to 0.62 times.
“We are grateful for the tremendous support from our shareholders, which we believe demonstrates their confidence in our vision to move the business forward. This is the key milestone in completing the deal, which is good for the group and for our shareholders,” Sapura Energy president and CEO Tan Sri Shahril Shamsuddin said.
“Through this partnership, we have gained a strong exploration and production partner in OMV.
“This partnership will provide a strong foundation for our continued growth strategy, which will see us expand our portfolio and acreage position,” he added.