KUALA LUMPUR (March 13): Sapura Energy Bhd’s trading volume on Monday (March 13) morning swelled five times to 211.81 million shares — five times its 200-day average trading volume of 56.99 million shares — on news that it has found a white knight.

The stock rose as much as 33.33% or 1.5 sen to six sen, before paring its gains to five sen at 11.04am, still 11.11% or one sen higher than its closing price of 4.5 sen on Friday.

At five sen, the global integrated energy solutions provider is valued at RM719.06 million.

In its latest issue, The Edge Malaysia weekly reported that Sapura Energy had found a white knight to help turn the company around.

According to a report in its March 13 issue, the company had stated in court documents that it had received “a formal letter from a white knight” in February, which will offer financial support to Sapura Energy, subject to certain conditions.

The financial help would be in the form of a capital injection of up to RM1.8 billion into the Sapura group, through a subscription of redeemable convertible loan stocks.

The proceeds will be used to settle outstanding debts owed to the group’s local vendors in the interest of preserving and protecting the Malaysian O&G ecosystem, as well as non-Malaysian O&G service providers, among others.

Following the emergence of the white knight, Sapura Energy has filed a new proposal to restructure its RM10.3 billion debt owed to nine lenders who fall under financiers of its multi-currency financing facilities. 

The group also owes RM5.12 billion to its vendors.

Sources told The Edge that the white knight could be an oil & gas company from the Middle East.