12 July 2011

good morn every1

Stocks to watch: SapuraCrest, Kencana, E&O, SILK, KPJ, AFG

KUALA LUMPUR: All eyes would be on SAPURACREST PETROLEUM BHD [] and KENCANA PETROLEUM BHD [] when they resume trading on Tuesday, July 12 following a proposed merger which would position them stronger to bid for upstream jobs.

Other stocks to watch are Eastern and Oriental Bhd (E&O),SILK Holdings Bhd, KPJ HEALTHCARE BHD [] and ALLIANCE FINANCIAL GROUP BHD [] (AFG).

SapuraCrest and Kenanca announced Integral Key Sdn Bhd (IKSB), a special purpose vehicle, had made a RM11.85-billion offer to acquire all their assets and liabilities in a share swap.

The merged entity would become one of the world’s largest oil and gas service providers in terms of market capitalisation and assets.

Meanwhile, E&O is expected record about RM66 million in profit from the sale of a building and freehold land in Tanjong Tokong on Penang island for RM134 million cash.

The E&O group’s original cost of investment in the land made in May 2004 was RM13.57 million while the CONSTRUCTION [] cost of the building incurred from March 2009 to May 2011 was RM54.17 million.

SILK secured four long term contracts worth a total of RM39.75 million from Petronas Carigali Sdn Bhd for the provision four units of anchor handling tug supply vessel (AHTSV).

Its subsidiary Jasa Merin (Malaysia) Sdn Bhd had been the awarded the four contracts. It said the long term contracts for the four units of AHTSV were for the primary period of one year, with various effective commencement dates in July 2011 respectively, with options to extend for a further period of one year each.

KPJ is teaming up with Yayasan Islam Perlis (YIP) to set up and operate a new hospital to be known as KPJ Perlis Specialist Hospital. KPJ’s unit Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB) had signed the agreement with YIP on Monday, July 11.

It said the JV would operate under the name Perlis Specialist Hospital Sdn Bhd, of which KPJSB would hold 60% equity interest while YIP would hold the remaining 40%.

Meanwhile in AFG, the Employees Provident Fund (EPF) Board had disposed of 5.2798 million shares from July 5 and 6, reducing its shareholding to 12.53% or 193.96 million shares.

The shares had run up early last week on market talk that Temasek Holdings Pte Ltd and Langkah Bahagia Sdn Bhd might dispose of their combined 30% stake in AFG.

Market talk was that Temasek might want to dispose of its stake in AFG after selling its stakes in two of China’s biggest banks.

Good morning Max sifu, Susan Jie and comrades [You must be registered and logged in to see this image.]

Proposal to merge SapuraCrest, Kencana

The merged SapuraCrest-Kencana entity is expected to have a market capitalisation of RM10 billion as well as some RM6 billion worth of assets.


Kuala Lumpur: Maybank Investment Bank Bhd (Maybank IB) and CIMB Investment Bank Bhd have joined forces to entice SapuraCrest Petroleum Bhd and Kencana Petroleum Bhd to merge and create the largest local oil and gas service provider by assets.

The merged entity is expected to have a market capitalisation of RM10 billion as well as some RM6 billion worth of assets.

A special purpose vehicle, Integral Key Sdn Bhd (IKSB), yesterday offered to acquire the assets and liabilities of SapuraCrest and Kencana Petroleum in exchange for cash and IKSB shares .



The cash portion for SapuraCrest is RM875 million or about 14.9 per cent of the deal, while for Kencana the cash portion is RM969 million or 16.2 per cent of the deal.

Under the proposed deal, Sapura-Crest and Kencana Petroleum will have equal share in IKSB, while IKSB will maintain the listing status of only one of the two companies.

The other will be delisted from the stock exchange.

The deal values SapuraCrest at RM5.87 billion, or RM4.60 a share, and Kencana Petroleum at RM5.98 billion, or RM3 a share.

SapuraCrest and Kencana's last traded prices prior to their suspension yesterday were RM4.49 and RM2.80 respectively.

"We believe the proposed merger is timely, in light of the investment cycle in the oil and gas sector, especially in exploration and production activities (upstream). Both SapuraCrest and Kencana Petroleum have commendable individual capabilities and competencies which are complementary across the value chain," Maybank IB's chief executive officer Tengku Datuk Zafrul Tengku Abdul Aziz said.

CIMB Investment executive director Datuk Charon Mokhzani and legal adviser Kadir Andri & Partners partner E. Sreesanthan were also present at the press conference.

For the deal to go through, 75 per cent of the shareholders of the two companies, respectively, must approve the offer.

SapuraCrest's major shareholder chief executive officer Datuk Shahril Shamsuddin and Kencana Petroleum's chief executive officer Datuk Mokhzani Mahathir have thus far expressed interest in the deal.

Shahril owns a direct and indirect stake of 40.1 per cent in SapuraCrest through Sapura Holdings Sdn Bhd, while Mokhzani holds a 32.4 per cent stake in Kencana through his interest in Khasera Baru Sdn Bhd.

Kencana, on its part, has appointed AmInvestment Bank Bhd as its adviser and Credit Suisse as its financial adviser. SapuraCrest, however, has yet to appoint an adviser.

Both parties were approached last Thursday with the proposal.

The board of SapuraCrest and Kencana Petroleum have 32 days to accept the offer before it lapses.

Should the offer obtain both boards' approval, the proposal by Maybank IB and CIMB Investment suggests the establishment of a merger integration committee to be co-chaired by principal shareholders, Shahril and Mokhzani.

The committee will work to iron out details of the merger before it is presented to shareholders for approval.

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hi all, good morning... [You must be registered and logged in to see this image.]

OMG, i cant see a single green line in EU and US [You must be registered and logged in to see this image.]

today ken and sap got show kah? [You must be registered and logged in to see this image.]

morn bern, sun n phoenix ...

Dow Jones Industrial Average

12,505.76
-151.44 (-1.20%)
Jul 11 - Close


1. Range 12,470.30 - 12,655.84
2. 52 week 9,936.62 - 12,876.00
3. Open 12,655.62
4. Vol. 133.08M

morn all

hlk open thread wor.....[You must be registered and logged in to see this image.]
lets see what happ [You must be registered and logged in to see this image.]

phoenix wrote:morn all

hlk open thread wor.....[You must be registered and logged in to see this image.]
lets see what happ [You must be registered and logged in to see this image.]

hope proposed kencana-sapcres merger n 1.85 div fr jerneh can help boost dull sentiment @ klci ...

hlk wrote:morn bern, sun n phoenix ... [You must be registered and logged in to see this image.]

good morning hlk...

phoenix wrote:morn all

hlk open thread wor.....[You must be registered and logged in to see this image.]
lets see what happ [You must be registered and logged in to see this image.]

good morning phoenix ...

i have drb-ce small small 300lots at .140, yest last minute mom chiong but bb no movement

wow! kencana going crazy today....? how i wish I have the mother share [You must be registered and logged in to see this image.]

EPF sells 4.28m Alliance shares

THE Employees Provident Fund (EPF) sold 4.28 million Alliance Financial Group Bhd shares last week, fillings to the stock exchange show.

With the sale, EPF now still owns some 193.96 million Alliance shares. EPF is a major stakeholder in Alliance with a 12.53 per cent stake.