Home About Us Capabilities Investors Media Centre Career Contact Us
Home  /  Latest News  /  SapuraCrest–Kencana RM11.85bil merger needs 75% shareholders’ nod
SapuraCrest–Kencana RM11.85bil merger needs 75% shareholders’ nod

Boards’ approval in sight

PETALING 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.

Sources 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.

The 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.

Mayban 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.

SapuraCrest and Kencana will have to call for special shareholders meetings to vote on the merger.

Upon 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.

With 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 goes through.

Both companies will have to call for special shareholders' meetings to vote on the deal.

This EGM will also require principal shareholders of Kencana and SapuraCrest, namely Datuk Mokhzani Mahathir and Datuk Shahril Shamsuddin, to vote.

Shahril, 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.

Both Sapura and Kencana have a common shareholder in the Employees Provident Fund with a 10.1% stake and 7.8% stake respectively in the companies.

While 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.

With 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.

Site Map Legal Disclaimer Privacy Policy