KUALA LUMPUR: KENCANA PETROLEUM BHD [] and SAPURACREST PETROLEUM BHD [] shares advanced in early trade on Tuesday, July 12as investors viewed the merger of the companies under Integral Key Sdn Bhd (IKSB), a special purpose vehicle would put it on firmer footing to secure bigger downstream projects.
At 9.05am, Kencana rose 12 sen to RM2.92 with 2.35 million shares done while SapuraCrest added three sen to RM4.52 with 253,700 shares traded.
The merged entity would become one of the world's largest oil and gas service providers in terms of market capitalisation and assets.
On Monday, IKSB had made a RM11.85-billion offer to acquire all their assets and liabilities in a share swap.
OSK Research is maintaining a Buy on Kencana with an unchanged fair value of RM3.17 given the longer term potential following a merger with SapuraCrest Petroleum.
IKSB proposed to acquire Kencana's entire business and undertakings, including its assets and liabilities for RM5.98 billion or equivalent RM3 a share.
Concurrently, IKSB will also acquire the entire assets and liabilities of Sapura Crest Petroleum for an equivalent of RM4.60 per share.
'We view the merger between Kencana and SapCrest positively as we see both their businesses complementing one another despite minor duplication in their less important business segments,' OSK Research said.
''
At 9.05am, Kencana rose 12 sen to RM2.92 with 2.35 million shares done while SapuraCrest added three sen to RM4.52 with 253,700 shares traded.
The merged entity would become one of the world's largest oil and gas service providers in terms of market capitalisation and assets.
On Monday, IKSB had made a RM11.85-billion offer to acquire all their assets and liabilities in a share swap.
OSK Research is maintaining a Buy on Kencana with an unchanged fair value of RM3.17 given the longer term potential following a merger with SapuraCrest Petroleum.
IKSB proposed to acquire Kencana's entire business and undertakings, including its assets and liabilities for RM5.98 billion or equivalent RM3 a share.
Concurrently, IKSB will also acquire the entire assets and liabilities of Sapura Crest Petroleum for an equivalent of RM4.60 per share.
'We view the merger between Kencana and SapCrest positively as we see both their businesses complementing one another despite minor duplication in their less important business segments,' OSK Research said.
''
No comments:
Post a Comment