Date: 29.01.2019.

Shareholders of Sapura Energy Berhad (Sapura Energy) overwhelmingly supported the proposed 50:50 strategic partnership with Austria’s OMV Aktiengesellschaft (OMV AG) at the Extraordinary General Meeting today. The 99.98 per cent approval from shareholders today gives certainty to the completion of the transaction.

The transaction is based on an enterprise value of up to RM6.6 billion, and will result in Sapura Energy receiving up to RM4.0 billion in cash and recognise a net gain of RM2.7 billion for the 50 per cent stake.

Sapura Energy will receive total cash proceeds of RM7.6 billion immediately from the rights issue and the strategic partnership with OMV. The cash proceeds will be substantially used to reduce the borrowings of the Group and its gearing ratio is expected to drop significantly from 1.74x to 0.62x. A portion of the cash proceeds raised will be used to fund the working capital requirements of the Group which is expected to increase in tandem with the growth in the order book recorded today. This, together with the savings in finance charges, is expected to positively contribute towards the Group’s future earnings.

“We are grateful for the tremendous support from our shareholders, which we believe demonstrates their confidence in our vision to move the business forward. This is the key milestone in completing the deal, which is good for the Group and for our shareholders,” said Tan Sri Shahril Shamsuddin, President and Group Chief Executive Officer, Sapura Energy Berhad.

“Through this partnership, we have gained a strong E&P partner in OMV. This partnership will provide a strong foundation for our continued growth strategy, which will see us expand our portfolio and acreage position,” said Tan Sri Shahril.

Sapura Energy is confident that the partnership with OMV will further unlock the value of the E&P business beyond monetary benefits. In addition, it will enable the sharing of expertise, knowledge and technology that would reduce the risks and capital requirements in exploration and development activities.

OMV AG is one of Austria’s largest listed industrial companies with annual group revenue of EUR 20 billion and a workforce of more than 20,000 employees. In Upstream, OMV AG has a strong base in Romania, Austria and a balanced international portfolio in the North Sea, the Middle East & Africa and Russia as further core regions.

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.