PNB to hold 40% stake in Sapura Energy post-cash call

This article first appeared in The Edge Financial Daily, on September 26, 2018.
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KUALA LUMPUR: Permodalan Nasional Bhd (PNB), which is committed to take up some of the unsubscribed rights shares in Sapura Energy Bhd, will eventually hold a 40% stake in the oil and gas group — a substantial rise from its current level of 12.16%.

It a statement yesterday, Sapura Energy said PNB has also undertaken to subscribe in full the Islamic redeemable convertible preference shares (RCPS-i).

“We are appreciative of PNB’s readiness to embark on our next phase of growth and its confidence in our prospects for the future against the backdrop of improving industry conditions,” said Sapura Energy president and group chief executive officer Tan Sri Shahril Shamsuddin, who is also the co-founder of the group.

However, Sapura Technology Sdn Bhd, Shahril’s investment vehicle that holds a direct shareholding of 15.9%, will subscribe to the rights issue for a minimum amount of RM300 million, which is less than its full entitlement. As a result, Sapura Technology’s stake will be diluted to 12.22%.

To recap, Sapura Energy announced its massive RM4 billion cash call last month. It proposed a five-for-three renounceable rights issue of shares at 30 sen per share.

The cash call is sweetened by free detachable warrants.

It also proposed renounceable rights issue of up to 2.39 billion new RCPS-i at 41 sen per unit on the basis of two RCPS-i for five existing shares held.

The group’s share price came under selling pressure after the news, down from 60 sen to a low of 33.5 sen. It closed at 44 sen yesterday. Its share price rebounded on news that the group had recently entered into an exclusive negotiation with a major Austrian oil and gas company, OMV AG.