Sunday, August 26th, 2018

 

US, Mexico said poised to reach Nafta deal as soon as tomorrow

MEXICO CITY, Aug 26 — The US and Mexico are close to resolving bilateral differences on Nafta and may wrap up as soon as tomorrow, said three people familiar with the progress, clearing the way for Canada to possibly return to talks to update the…


Sapura Energy banks on major shareholders for fundraising success

PETALING JAYA: Sapura Energy Bhd, which saw its share price hit an all-time low of 37 sen last Friday on plans for a rights issue to raise RM 4 billion, is banking on substantial shareholders to make the fundraising exercise a success.

It has secured letters of support from Sapura Technology Sdn Bhd and Permodalan Nasional Bhd (PNB).

Sapura Technology, a direct shareholder of Sapura Energy with a 16% stake, has expressed its intent to participate in the rights issue for a minimum amount of RM300 million.

PNB, which owns interest in Sapura Energy through its various funds, will subscribe to its entitlement and is looking at taking up excess shares up to an agreed amount to be determined later.

The only other substantial shareholder listed in the group's latest annual report is Kumpulan Wang Persaraan (Diperbadankan), which owns a 6.85% stake in Sapura Energy.

The Employees Provident Fund, which recently criticised the pay package of Sapura Energy president and group CEO Tan Sri Shahril Shamsuddin and voted against his re-election to the board, is no longer a substantial shareholder in the group.

Meanwhile, Sapura Energy said the rights issue is part of a broader strategic plan to strengthen the group's core businesses, boost its financial position and create better value for its shareholders.

At the end of trading on Friday, it trimmed its losses to settle at 41.5 sen on 484.1 million shares done.

In a filing with the stock exchange, the group said it is evaluating various options, which may involve the listing of its exploration and production (E&P) business and exploring a possible strategic partnership for its drilling business.

Up to RM3 billion will be raised through the rights issue exercise with free warrants and up to RM1 billion through the rights issue of Islamic redeemable convertible preference shares.

The proposed rights issue of shares with warrants entails the issuance of up to 9.99 billion rights shares at an issue price of 30 sen per rights share together with up to 998.69 million free warrants, on the basis of five rights shares for every three Sapura Energy shares held and one free warrant for every 10 rights shares subscribed.

Bernama quoted Credit Suisse as saying that while the highly dilutive exercise might seem negative on the surface, it believes it is necessary and will place Sapura Energy in a much better position to secure new higher-quality contracts (demand for services is clearly on an uptrend) in the sector's upcycle.

“We believe longer term shareholders will be rewarded as Sapura Energy monetises its exploration and production (E&P) assets and secures more new profitable contracts, ” it said.

Credit Suisse believes that if Sapura Energy successfully raises RM4 billion, it would save RM184 million a year in interest and return to the black in financial year 2020, even without any new contract wins.


Sapura Energy banks on major shareholdes for fundraising success

PETALING JAYA: Sapura Energy Bhd, which saw its share price hit an all-time low of 37 sen last Friday on plans for a rights issue to raise RM 4 billion, is banking on substantial shareholders to make the fundraising exercise a success.

It has secured letters of support from Sapura Technology Sdn Bhd and Permodalan Nasional Bhd (PNB).

Sapura Technology, a direct shareholder of Sapura Energy with a 16% stake, has expressed its intent to participate in the rights issue for a minimum amount of RM300 million.

PNB, which owns interest in Sapura Energy through its various funds, will subscribe to its entitlement and is looking at taking up excess shares up to an agreed amount to be determined later.

The only other substantial shareholder listed in the group's latest annual report is Kumpulan Wang Persaraan (Diperbadankan), which owns a 6.85% stake in Sapura Energy.

The Employees Provident Fund, which recently criticised the pay package of Sapura Energy president and group CEO Tan Sri Shahril Shamsuddin and voted against his re-election to the board, is no longer a substantial shareholder in the group.

Meanwhile, Sapura Energy said the rights issue is part of a broader strategic plan to strengthen the group's core businesses, boost its financial position and create better value for its shareholders.

At the end of trading on Friday, it trimmed its losses to settle at 41.5 sen on 484.1 million shares done.

In a filing with the stock exchange, the group said it is evaluating various options, which may involve the listing of its exploration and production (E&P) business and exploring a possible strategic partnership for its drilling business.

Up to RM3 billion will be raised through the rights issue exercise with free warrants and up to RM1 billion through the rights issue of Islamic redeemable convertible preference shares.

The proposed rights issue of shares with warrants entails the issuance of up to 9.99 billion rights shares at an issue price of 30 sen per rights share together with up to 998.69 million free warrants, on the basis of five rights shares for every three Sapura Energy shares held and one free warrant for every 10 rights shares subscribed.

Bernama quoted Credit Suisse as saying that while the highly dilutive exercise might seem negative on the surface, it believes it is necessary and will place Sapura Energy in a much better position to secure new higher-quality contracts (demand for services is clearly on an uptrend) in the sector's upcycle.

“We believe longer term shareholders will be rewarded as Sapura Energy monetises its exploration and production (E&P) assets and secures more new profitable contracts, ” it said.

Credit Suisse believes that if Sapura Energy successfully raises RM4 billion, it would save RM184 million a year in interest and return to the black in financial year 2020, even without any new contract wins.


CIMB joins UN initiative to champion sustainable, responsible banking

KUALA LUMPUR, Aug 26 — CIMB Group Holdings Bhd will champion sustainable and responsible banking by becoming the first banking group in Malaysia and Asean to join the United Nations (UN) Environment Programme Finance Initiative…


Bank of Thailand’s hawkish tilt adds another tailwind for baht

SINGAPORE, Aug 26 — The Bank of Thailand is giving the baht — the most-loved emerging-market currency this month — one more reason to keep up its outperformance. Piggybacking on a strong current-account surplus, the baht has braved…


Sapura Energy’s rights issue to create value for shareholders

KUALA LUMPUR, Aug 26 — Sapura Energy Bhd’s plan to raise RM4 billion, via a major rights issue, will create value for shareholders and return the company to profitability as oil and gas market prospects improve, said Credit Suisse in a…


World’s top refiner Sinopec posts record profit on oil rally

HONG KONG, Aug 26 — China Petroleum & Chemical Corp said its half-year earnings jumped to the highest level on record as refining profits climbed and a rebound in crude prices brought its oil and gas exploration unit closer to breaking even….


Economist: Govt to review several subsidy systems next year

KUALA LUMPUR, Aug 26 ― The government is expected to review several subsidy systems by next year, says Maybank Investment Bank Bhd (Maybank IB) Group Chief Economist Suhaimi Ilias. He said Prime Minister Tun Dr Mahathir Mohamad had earlier…


Foreign funds inflow to continue next week

KUALA LUMPUR, Aug 26 ― The current trend of net buyers emerging among foreign investors in Bursa Malaysia will likely continue next week, thus supporting the composite index to stay above the 1,800-points level. The benchmark FTSE Bursa Malaysia…


Airbnb sues New York over 'government overreach'

NEW YORK, Aug 26 ― Airbnb sued the city of New York on Friday, denouncing as “an extraordinary act of government overreach” a new law forcing home-sharing platforms to disclose data about hosts. It was a dramatic escalation in the battle…