Sunday, May 19, 2024
33 C
Brunei Town

Sapura Energy to divest MYR3.37B stake to TotalEnergies

KUALA LUMPUR (BERNAMA) – Sapura Energy’s wholly-owned subsidiary, Sapura Upstream Assets Sdn Bhd, has entered into a conditional agreement to divest its entire 50 per cent equity interest in SapuraOMV Upstream Sdn Bhd to France-based TotalEnergies Holdings SAS for USD530.3 million in cash.

Sapura Energy said it will also be relieved by TotalEnergies of a USD175 million obligation in respect of a financing facility extended by OMV Exploration and Production GmbH (OMV E&P) to SapuraOMV, in connection with the share subscription and restructuring exercise among Sapura Energy, OMV E&P, SapuraOMV and Sapura Upstream on January 31, 2019.

“Consequently, the total disposal consideration for the transaction, encompassing both the cash payment of USD530.3 million and the release of the USD175 million obligation, amounts to USD705.3 million,” Sapura Energy said in a statement yesterday.

This agreement follows a deal signed earlier this year by TotalEnergies to acquire the other 50 per cent stake in SapuraOMV from Austria-based OMV AG.

Sapura Energy said the proposed divestment is expected to result in a net gain on disposal of about MYR793 million upon its completion, enhancing the financial position of the group.

File photo of the Sapura Energy logo. PHOTO: THE STAR