SAPURA Energy Bhd has unveiled a massive regularisation plan that includes a 99.99% share capital reduction, a 1-for-20 share consolidation, and a debt restructuring that will halve its RM10.76 billion borrowings to RM5.61 billion.
The company will cancel over RM12.77 billion in unrepresented capital, bringing its issued share capital down to just RM1.2 million.
The move, together with the share consolidation, is aimed at improving financial ratios and stabilising share price volatility.
The debt restructuring comprises a RM784 million debt waiver, RM2.25 billion in sukuk conversion, RM5.23 billion into sustainable debts tied to its drilling and Brazil operations, and RM1.77 billion in RCUIDS to be issued to creditors.
No immediate cash payout is involved.
Sapura will also receive a RM1.1 billion cash injection from Malaysia Debt Holdings (MDH), linked to MOF Inc, via redeemable convertible loan stocks (RCLS).
The funds will be used to fully settle over RM970 million owed to Malaysian oil & gas vendors.
If fully converted, MDH will own 35.92% of Sapura, becoming the largest shareholder.
It has applied to the Securities Commission Malaysia for an exemption from making a mandatory takeover offer.
The restructuring is expected to generate RM517 million in annual interest savings and improve gearing from -3.13x to as low as 1.44x.
Sapura aims to exit its PN17 status upon achieving two consecutive quarters of profit following the plan’s implementation.
No trading suspension will be imposed during the share consolidation.
Shareholder approval will be sought at an upcoming EGM. — TMR
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