Hot Stock Sapura Resources surges on O&G asset injection speculation

by **Cals** Wed 09 Jul 2014, 08:52

Hot Stock Sapura Resources surges on O&G asset injection speculation

Business & Markets 2014

Written by Madiha Fuad and Jonathan Gan of theedgemalaysia.com

Tuesday, 08 July 2014 15:47

KUALA LUMPUR (July 8): Sapura Resources Bhd share price jumped 10.3% amid speculation that the company is mulling an asset injection that will add an oil & gas operation into its business portfolio.

However, an executive familiar with Sapura Resources said that there had never been a plan for the asset injection. “There is no plan to inject any new assets into the company,” said the executive.

The stock marched to a one-year high of RM1.19, up 12 sen with some 4.04 million shares changing hands.

Sapura Holdings Sdn Bhd is controlled by the Shamsuddin family, the single largest shareholder of Sapura Resources with a 51.84% equity stake.

Sapura Resources was in the spotlight in December, last year, when it entered into a joint venture agreement with Petroliam Nasional Bhd’s (Petronas) KLCC Holdings Bhd to develop a site near KLCC.

In a latest announcement to Bursa Malaysia, the company said all conditions precedent to its joint venture agreement with KLCC Holdings (KLCCH) had been fulfilled.

The joint venture agreement (JVA) and supplemental joint venture agreement (SJVA) have now become unconditional.

To recap, Sapura Resources and KLCC Holdings hold equal stakes in the joint venture.

According to the announcement, the JV project is expected to kickstart in the second half of the year, and would include the construction of a premier office tower, a convention centre, and a retail podium.

The development is located at Lot 91 near the KLCC twin tower.

A technical report by Kenanga Research had placed resistance values for the stock at RM1.07, RM1.11 and RM1.14 while an initial support was placed at RM1.