INTRODUCTION

The Board of Directors of SapuraKencana Petroleum Berhad ("SapuraKencana" or the “Company") (“Board”) is pleased to announce that its wholly-owned subsidiary, SapuraKencana Onshore Sdn Bhd has on 15 March 2017 disposed of its 60% equity interest in King Hang Engineering Company Limited (“King Hang”) comprising 3,450,000 ordinary shares of HKD1 each (“Disposal”).  Upon the completion of the Disposal, King Hang shall cease to be an indirect subsidiary of the Company.

INFORMATION ON KING HANG ENGINEERING COMPANY LIMITED

King Hang is a company incorporated in Hong Kong with limited liability.  Presently, the issued and paid up share capital of King Hang is HKD5,750,000 divided into 5,750,000 ordinary shares of HKD1 each. Its principal activity is provision of engineering works.  King Hang has one wholly owned subsidiary, namely Dong Guan Hang Hoi Steel Structure Company Limited, a company incorporated in China and is engaged in the fabrication of steel works.

INFORMATION ON THE PURCHASER AND SALE CONSIDERATION

The purchaser is Mr Wong Ho Sing, a resident of Hong Kong.

The sale consideration of HKD5,000,000 (equivalent to RM2,835,000 based on HKD/MYR exchange rate of HKD1 : RM0.567) was paid in cash and was arrived at upon negotiation based on “willing buyer and willing seller” basis and after taking into consideration the carrying value and net assets value of King Hang.

RATIONALE OF THE DISPOSAL

The Disposal is to align with SapuraKencana Group’s direction. 

EFFECTS OF THE DISPOSAL

The Disposal will not have any effect on the issued and paid-up capital and substantial shareholders’ shareholdings in the Company.

The Disposal is not expected to have any material effect on the earnings of SapuraKencana Group or net assets for the financial year ending 31 January 2018. 

APPROVALS REQUIRED

The Disposal is not subject to the approval of the shareholders of the Company or any other regulatory authorities.

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST

None of the Directors and/or major shareholders of the Company and/or persons connected with them have any interest, direct or indirect in the Disposal.

DIRECTORS’ STATEMENT

The Board having considered all aspects of the Disposal is of the opinion that the Disposal is in the best interest of the Company.

This announcement is dated 15 March 2017