Thursday, July 7, 2011

SapuraCrest extends gain in early trade

KUALA LUMPUR: SAPURACREST PETROLEUM BHD [] extended its gains in early trade on Thursday, July 7 after it said on Wednesday that it was in talks with Clough Ltd for a business acquisition or cooperation for its marine CONSTRUCTION [] business.

At 9.05am, SapuraCrest rose five sen to RM4.55 with 49,500 shares done.

Clough is an Australian integrated oil and gas company with a market cap of AU$561 million.

RHB Research in a note on July 6 said Clough's marine division was a good fit with Sapuracrest's T&I division based on the asset and JV profile.

The research house said that the purchase or JV would give Sapuracrest more international exposure and increase its access to the global subsea market which is expected to be vibrant given the growing number of deepwater projects.

'We maintain our fair value of RM4.80/share (based on 20x FY13 EPS) and Outperform call until further guidance on the proposal has been provided by management.

'We highlight the share price has gained 3% today post-announcement,' it said yesterday.

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