approval in sight
JAYA: The boards of directors of Kencana Petroleum Bhd and
SapuraCrest Petroleum Bhd are at the final stages of approving the
merger between the two companies to create the largest oil and gas
(O&G) service provider by asset in the country, sources said.
also indicated that the approvals by the boards will be announced to
Bursa Malaysiasoon, ahead of the Aug 15 offer deadline set by the
investment banks undertaking the deal.
proposed merger between Kencana and SapuraCrest, valued at
RM11.85bil, will seespecial-purpose vehicle Integral Key Sdn Bhd
(IKSB) buy up the assets, liabilities and business undertakings of
both companies, to be paid in cash and new shares in IKSB.
Ventures Sdn Bhd owns the SPV and the latter will be jointly advised
on the corporate deal by Maybank Investment Bank Bhd and CIMB
Investment Bank Bhd.
and Kencana will have to call for special shareholders meetings to
vote on the merger.
receiving cash and new IKSB shares, both SapuraCrest and Kencana will
distribute the cash and IKSB shares they receive to their
shareholders, resulting in the current shareholders of SapuraCrest
and Kencana owning shares in IKSB.
the boards set to approve the deal, the next hurdle will be for both
companies to secure 75% of shareholders approval each before the deal
companies will have to call for special shareholders' meetings to
vote on the deal.
EGM will also require principal shareholders of Kencana and
SapuraCrest, namely Datuk Mokhzani Mahathir and Datuk Shahril
Shamsuddin, to vote.
via Sapura Technology Bhd, owns a 40.1% stake in SapuraCrest while
Mokhzani's investment firm Khasera Baru Sdn Bhd owns a 32.4% stake in
Kencana. Other key shareholders of Sapura is Norway-based Seadrill
Ltd with a 23.6% stake while Kencana has Kumpulan Persaraan Wang with
a 6.8% stake in it.
Sapura and Kencana have a common shareholder in the Employees
Provident Fund with a 10.1% stake and 7.8% stake respectively in the
both principal shareholders of Kencana and SapuraCrest are game for
the merger, it is also learnt that Seadrill and KWAP are expected to
vote positively on the deal.
an asset size of RM6bil and a combined market capitalisation of
RM10.88bil, the new merged entity is expected to undertake larger and
more complex oil and gas projects.