Kuala Lumpur, 8 July 2025
Sapura Energy Berhad (“SEB” or the “Company”) has announced that it will convene an Extraordinary General Meeting (“EGM”) on 30 July 2025, whereby shareholders are invited to vote on its Proposed Regularisation Plan (“PRP”).
Shareholders will consider resolutions designed to reset the Company’s capital structure by addressing its accumulated losses, restructuring its debt and raising fresh funds. Together, these measures aim to restore the financial health of SEB and its subsidiaries (‘the Group”), helping the Company exit its PN17 classification and lay the groundwork for sustainable, long-term shareholder value.
Key Proposals of the Regularisation Plan
In a circular distributed to shareholders, the Company outlined four key proposals that constitute the PRP:
1. Proposed Capital Reconstruction:
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- A 99.99 percent capital reduction to reduce accumulated losses; an exercise to improve the Company’s capital structure.
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- A 20-to-1 share consolidation to reduce the number of shares being traded on Bursa Malaysia, which will enhance share trading price and reduce price volatility.
Both exercises do not have any impact on the percentage shareholding of existing shareholders.
2. Proposed Debt Restructuring Exercise
This will reduce SEB’s total borrowings from about RM10.8 billion to approximately RM5.6 billion. Annual interest costs are expected to decrease by more than RM500 million – a reduction of about 60 percent - enabling SEB to be in a better position to achieve profitability.
3. Proposed Fund-Raising
Malaysia Development Holding Sdn. Bhd. (“MDH”) will subscribe up to RM1.1 billion in redeemable convertible loan stocks (“RCLS”), earmarked to settle outstanding payments to vendors in the Malaysian oil and gas ecosystem.
4. Proposed Exemption
Intended to provide relief to MDH and its Persons-Acting-in-Concert (“PACs”) from the obligation to undertake a Mandatory Offer, in the event of a full conversion of the RCLS.
“We recognise the complexity of SEB’s Proposed Regularisation Plan and we are committed to helping every shareholder fully understand the details so they can make an informed decision”, said SEB Group Chief Executive Officer Muhammad Zamri Jusoh. “To support this, we will establish a dedicated Shareholders’ Help Desk to answer their questions and concerns.”
Shareholders with further inquiries about the Proposed Regularisation Plan may call the Shareholders’ Help Desk at +603 - 6415 9900 between 9:30 AM and 4:00 PM, beginning 15 July 2025 until 29 July, 2025.
Envisaged Outcomes & Long-Term Value Creation
With the shareholders’ approval for the PRP, SEB envisions the following benefits for the Company and its shareholders:
- Exit PN17 Classification: SEB can apply to exit its PN17 status if it can deliver two consecutive profitable quarters after the Restructuring Effective Date.
- Strengthen Equity Position: The issuance of Settlement Shares, RCUIDS and RCLS will materially improve shareholders’ funds.
- Boost Liquidity & Contract Execution: The PRP will help SEB regularise its financial position, thus enabling a gradual restoration of trade credit facilities, which are essential for the Group to execute projects and bid for new contracts.
- Restore Market Credibility: Financial stability is expected to bolster stakeholder trust, placing the Group in a position to add value in the oil and gas value chain, and allow SEB to play a more active role in the continued development of the oil and gas ecosystem in Malaysia and the region.
Shareholders’ approval for the PRP is critical to SEB’s turnaround. Failing to secure this mandate will unravel its debt restructuring scheme, thus throwing the future of SEB into uncertainty.
“These proposals represent a decisive step in SEB’s future path and will determine if we can reshape SEB into a resilient, profitable company,” said Muhammad Zamri. “By addressing legacy liabilities, enhancing our equity base and securing strategic support, we are rebuilding the foundation for future profitability and shareholder returns. We recommend all shareholders to vote in favour of these proposals and support SEB’s recovery and value creation journey.”
For further editorial information, contact:
Sapura Energy Corporate Communications at [email protected]
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Cautionary note: “Sapura Energy”, “the group” and “the company” are used for convenience where references are made to Sapura Energy Berhad in general. Similarly, words like “we”, “us” and “our” are used to refer to Sapura Energy Berhad in general or to those who work for the company and its subsidiaries, where relevant. This press release may contain forward-looking statements. All statements other than statements of historical facts included in this press release, including, without limitation, those regarding our financial position, financial estimates, business strategies, prospects, plans and objectives for future operations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. Such forward-looking statements reflect our current view with respect to future events and are not a guarantee of future performance. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “aim”, “plan”, “forecast” or similar expressions and include all statements that are not historical facts.