Sapura Energy to sell 50% stake in Sapura Upstream for US$1.6b

September 12, 2018 | By | Reply More

Grab latest promotion at LAZADA now!

PETALING JAYA: Sapura Energy Bhd is planning to sell its 50% stake in wholly-owned subsidiary Sapura Upstream Sdn Bhd to Austria’s OMV Aktiengesellschaft (OMV AG) for US$1.6 billion.

The group’s shares rose one sen or 2.98% to 34.5 sen this morning following the announcement. At 10.49 am, the stock was the most active counter with 62.6 million shares changing hands.

In a statement today, Sapura Energy said it has entered into a heads of agreement (HoA) with OMV AG to form a strategic partnership.

The group said the proposed transaction is based on an enterprise value of US$1.6 billion, in which the parties have agreed to continue ongoing negotiations on an exclusive basis.

By joining forces, Sapura Energy said the parties will be strategically positioned to create sustainable long-term growth, expand portfolios and future business activities as well as realise synergies in the value chain.

Sapura Energy president and CEO Tan Sri Datuk Seri Shahril Shamsuddin said the partnership with OMV AG complements the group’s continued strategy to grow its portfolio and expand acreage position.

“OMV AG’s existing footprint offers new opportunities for our upstream segment and increases market reach for our services segment where OMV operates,” Shahril added.

OMV AG is one of Austria’s largest listed industrial companies with group sales of EUR 20 billion and a workforce of more than 20,000 employees.

FREE RM12.70 credit upon sign up to discover and book amazing travel experiences with Klook.

Category: News

About the Author ()

Leave a Reply