KUALA LUMPUR: Sapura Energy Bhd's share price jumped 22.22 per cent after it announced the sale of its entire 50 per cent stake in SapuraOMV Upstream Sdn Bhd to TotalEnergies Holdings SAS for US$705.3 million (RM3.37 billion).

Under the deal between Sapura Energy's unit Sapura Upstream Assets Sdn Bhd and TotalEnergies, Sapura Upstream will receive cash of US$530.3 million from TotalEnergies and be relieved of a US$175 million financing facility obligation extended by OMV Exploration & Production GmbH (OMV E&P) to SapuraOMV.

The stock opened 11.11 per cent higher at five sen from its previous close of 4.5 sen last week.

As at 10.15 am, Sapura Energy's shares were trading 11.11 per cent hgher at 5 sen, giving it a market capitalisation of RM918.8 million.

Yesterday, Sapura Energy announced that about RM2.45 billion of the cash proceeds from the deal will be used to repay outstanding liabilities and/or for the working capital of the group.

The deal will see Sapura Energy book a net gain of RM793.4 million.

The Practice Note 17 company, which is due to submit its regularisation plan by May 31, 2024, believes that the disposal of SapuraOMV will be a major milestone to the group's recovery plans for a long-term sustainable and viable future as the group would be able to pare down at least RM2.25 billion of its outstanding liabilitie.