With Sapura Energy Berhad facing tight financial problems to the extent that the group has sought a court order to keep creditors at bay, a report in December 2021 stated that Permodalan Nasional Berhad had taken an unsubscribed right shares in the group upping its shareholding in Sapura to 40% from 12.6% making it the largest shareholder in the company. The concerns now are how exposed is PNB to the situation?
In a statement released on its website, PNB said it is aware that the High Court, has granted Sapura Energy Berhad and 22 of its wholly-owned subsidiaries, Orders under Sections 366 and 368 of the Companies Act 2016 which are permissions to negotiate with creditors a proposed scheme of arrangement and a Restraining Order to restrain and stay legal proceedings against them.
The national unit trust company also said it understands that SEB has been negatively impacted by the volatility in the oil and gas industry and the adverse effects of Covid-19. The impact of these circumstances is reflected in Sapura’s financial performance, leading to a prolonged tight liquidity situation and various legal actions arising from outstanding payments to vendors and suppliers.
In view of the situation, PNB is assuring its unitholders that the situation at SEB has a minimal impact on its portfolio.
At current market prices, its exposure is less than 1% of its assets under management (AUM). PNB adds it remains steadfast and committed to. protecting and acting in the best interest of its unit holders.