Monday, July 11, 2011

Malaysia's Kencana, SapuraCrest plan $4 bln merger-source

KUALA LUMPUR, July 11 | Mon Jul 11, 2011 7:26am IST

(Reuters) - Malaysian oil and gas services companies SapuraCrest Petroleum and Kencana Petroleum will merge in a deal worth about 12 billion ringgit ($4 billion), a source with direct knowledge of the matter told Reuters.

The source said that the deal will be done through an 80-20 share swap and cash arrangement, with the two firms to be held under unlisted entity Integral Key Sdn Bhd.

Kencana and SapuraCrest were not immediately available for comment.

Both companies had halted trading in their shares on Monday morning. Kencana shares were last done at 2.80 ringgit each and SapuraCrest at 4.49 ringgit. ($1 = 2.993 Malaysian Ringgit) (Reporting by Min Hun Fong; editing by Liau Y-Sing)

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