December 14, 2011

SapuraCrest obtains shareholders approval to merge with Kencana

As reported by Bernama News on Dec 14, SapuraCrest Petroleum Bhd has obtained shareholders approval to merge with Kencana Petroleum Bhd, to set the stage for the establishment of the world's fourth largest oil and gas services provider.

Group president cum chief executive officer Datuk Seri Shahril Shamsuddin said the company is now only awaiting approval from Kencana's shareholders, at its extraordinary general meeting (EGM) tomorrow, before moving on with the merger.

"I guess by tomorrow we will know if we can move on with the plan. But there are also other approvals pending, including that from Bursa Malaysia and the High Court for a share reduction," he told reporters after SapuraCrests' EGM here today.

The merger between SapuraCrest and Kencana, to form Sapura Kencana, will create an entity with a total market capitalisation of RM10.9 billion and is expected to be completed in the first quarter of next year.

Shahril said the combined orderbook from the merger for the next two three years is estimated about RM13 billion. He said the company is hoping to maintain the orderbook value in the near-term and aims to increase it in the long-term.

"With the merger, the company will consolidate its position in the country's oil and gas industry, as well as strengthen the industry itself, through partnering with small and medium enterprises," he added.

Shahril said there are about 300 local SMEs supporting the company.

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