Sapura Energy's JV Seeks Financial Assistance Of US$350 Mln-US$550 Mln

KUALA LUMPUR, Jan 10 (Bernama) -- Seb Upstream Sdn Bhd (SUP), a joint venture (JV) company between Sapura Energy Bhd (SEB) and OMV Aktiengesellschaft (OMV AG), is seeking financial assistance of between US$350 million and US$550 million (US$1=RM4.113). In a filing with Bursa Malaysia Wednesday, SEB said US$350 million of the proceeds would be used to partially repay the amount owed by Sapura Upstream Sdn Bhd (SUSB) Group to SEB Group which amounted to US$890 million as set out in the subscription agreement. "The remaining, if any, will be used for the working capital of SUP Group," it said. It added that SEB Group may also be required to provide corporate guarantees, undertakings and/or securities for 50 per cent of the financing facilities to be obtained by SUP group. On Nov 9, 2018, SEB formed the JV with Austria-listed industrial company OMV AG, through which it would raise up to US$975 million in proceeds, of which about US$720 million would be used to repay SEB Group's debt. Under the agreements inked on Nov 9, SEB would issue new shares amounting to 50 per cent of the enlarged issued share capital of the newly-formed company, SUP, which will hold the entire stake in SUSB, to OMV AG's wholly-owned subsidiary OMV Exploration & Production GmbH for US$625 million. SEB will also receive US$350 million from SUSB Group as repayment of the outstanding amount to SEB and its subsidiaries. -- BERNAMA