Sapura Energy calls EGM to vote on crucial regularisation plan
The PRP is intended to restore the financial stability of SEB and its subsidiaries, paving the way for the oil and gas group to exit its Practice Note 17 (PN17) classification and build a solid foundation for long-term value creation.
In a circular to shareholders, the company detailed four main components of the plan.
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The Star
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Great Eastern to resume trading as delisting fails
A man walks past the SGX sign in Singapore. — Reuters SINGAPORE: Great Eastern Holdings Ltd's shares are expected to resume trading in Singapore, after the insurer failed to win enough shareholder support for its delisting plan that was backed by Oversea-Chinese Banking Corp (OCBC). About 63.5% of the insurer's minority shareholders voted for a delisting but that fell short of the threshold needed to take Great Eastern private. This was according to a company filing after an EGM. As a result, OCBC's S$900mil (US$704mil) offer has lapsed, the country's second-largest lender, said in a separate filing. The deal's failure is a setback for OCBC, which has owned the majority of Great Eastern since 2004 and has tried multiple times to take the 117-year-old insurer private. OCBC chief executive officer Helen Wong has said that it wanted to fully integrate its banking, wealth management and insurance businesses, and that owning all of Great Eastern would help improve its shareholder returns. To support Great Eastern's delisting proposal, OCBC had offered S$30.15 a share for the 6.28% of the insurer it does not own. It improved the offer by 17.8% last month from its previous bid. Great Eastern, one of the largest insurers in Singapore and Malaysia, has total assets of more than S$100bil with 16 million-plus policyholders. OCBC's shares closed up 0.8% last Tuesday, versus a 0.4% gain in the broader Straits Times Index. 'Whether OCBC owns 94% or 100%, it has a minimal impact on earnings or strategy as they are already in control,' said Jayden Vantarakis, head of equity research for South-East Asia at Macquarie Capital, adding that the market's view of the lender won't change with the latest outcome. Trading in Great Eastern had been suspended since July 2024, after OCBC failed to obtain a sufficient level for a delisting or compulsory acquisition with its previous offer. Its latest bid this year was still lower than the insurer's 2024 embedded value of S$38.08 a share, a metric used to value insurers elsewhere and cited by resistant minority shareholders urging a higher offer. Great Eastern will issue new shares to meet the exchange's listing rules. After the share issue, OCBC's holding in Great Eastern will be around 88% from the current level of about 94%, the insurer said in an earlier statement. It did not provide any date for the resumption of trading. The insurer has contributed an average of about S$700mil a year in net profit to OCBC over the past 10 years, translating to an average of about 15% of OCBC's annual profit over this period, the bank has said. — Bloomberg
The Star
08-07-2025
- The Star
Sapura Energy to convene EGM for shareholders' approval of regularisation plan
KUALA LUMPUR: Sapura Energy Bhd (SEB) will convene an extraordinary general meeting (EGM) on July 30, 2025, for shareholders to vote on its proposed regularisation plan aimed at restoring the company's financial health and exiting Practice Note 17 (PN17) status. In a filing with Bursa Malaysia today, SEB outlined four key components of the plan, which include capital reconstruction, debt restructuring, fundraising, and a proposed exemption for Malaysia Development Holding Sdn Bhd (MDH) and its partners from making a mandatory general offer. SEB said the capital reconstruction exercise involves a 99.99 per cent reduction and a 20-to-1 share consolidation, but neither exercise will affect the percentage shareholding of existing shareholders. The company also plans to reduce its borrowings from RM10.8 billion to RM5.6 billion under the debt restructuring proposal, which is expected to cut annual interest costs by 60 per cent or more than RM500 million. Meanwhile, MDH will subscribe up to RM1.1 billion in redeemable convertible loan stocks (RCLS) to help settle outstanding vendor payments in the local oil and gas ecosystem. The final component of the plan seeks to exempt MDH and its persons acting in concert from making a mandatory offer should they fully convert their RCLS. SEB said a dedicated shareholders' help desk will be set up from July 15 to assist with queries regarding the proposed regularisation plan. With shareholders' approval, the company aims to strengthen its equity position, improve liquidity and contract execution, restore market credibility, and eventually apply to exit its PN17 status upon recording two consecutive quarters of profit post-restructuring. Group chief executive officer Muhammad Zamri Jusoh described the proposals as a decisive step in shaping the company's future and determining whether it can transform into a resilient, profitable enterprise. "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 that all shareholders vote in favour of these proposals and support SEB's recovery and value creation journey,' he added. - Bernama
New Straits Times
08-07-2025
- New Straits Times
Sapura Energy calls EGM to vote on crucial regularisation plan
KUALA LUMPUR: Sapura Energy Berhad (SEB) has announced plans to convene an Extraordinary General Meeting (EGM) on 30 July 2025, where shareholders will vote on its Proposed Regularisation Plan (PRP), a crucial step aimed at strengthening its capital structure, clearing accumulated losses, restructuring debt, and securing new capital. The PRP is intended to restore the financial stability of SEB and its subsidiaries, paving the way for the oil and gas group to exit its Practice Note 17 (PN17) classification and build a solid foundation for long-term value creation. In a circular to shareholders, the company detailed four main components of the plan.
