KUALA LUMPUR: Sapura Energy Bhd is selling its 50 per cent stake in SapuraOMV Upstream Sdn Bhd to TotalEnergies Holdings SAS for US$530.3 million (about RM 2.53 billion).
Its subsidiary, Sapura Upstream Assets Sdn Bhd today entered into a conditional sale and purchase agreement (SPA) with TotalEnergies for the stake sale.
Sapura Energy will be relieved by TotalEnergies of a US$175 million obligation in respect of a financing facility extended by OMV Exploration & Production GmbH (OMV E&P) to SapuraOMV.
This is in connection with the share subscription and restructuring exercise among Sapura Energy, OMV E&P, SapuraOMV and Sapura Upstream on Jan 31, 2019.
"Consequently, the total disposal consideration for the transaction, encompassing both the cash payment of US$530.3 million and the release of the US$175 million obligation, amounts to US$705.3 million," it said.
The acquisition is subject to regulatory approvals and customary closing adjustments.
To account for regulatory approvals from certain jurisdictions, Sapura Energy said the closing is expected no later than the second half of 2025.
"Nevertheless, the management of both Sapura Energy and TotalEnergies are committed to expediting the completion of this transaction by year end," it said.
Sapura Energy group chief executive officer Datuk Mohd Anuar Taib said the outcome of the divestment is fair and equitable.
With full ownership of SapuraOMV, Mohd Anuar is confident that TotalEnergies will provide the right focus to further develop the growth potential of its assets.
"This portfolio rationalisation marks our strategic shift away from the exploration and poduction business, as we enhance our core capabilities to deliver innovative solutions to the dynamic energy industry," he said.
Sapura Energy had actively pursued the divestment of its stake in SapuraOMV, in line with the restructuring exercise to address its unsustainable debt and outstanding payables.
Net disposal proceeds will be utilised mainly to settle amounts owing to Sapura Energy's relevant scheme creditors, including its multi-currency financing lenders.
The proposed divestment is expected to result in a net gain on disposal of RM793 million upon completion, enhancing the financial position of the group.
