KUALA LUMPUR – The proposed merger between Kencana and SapuraCrest Petroleum Berhad is on track to being listed in the 1Q 2012 pending regulatory approvals, following the 99.8% approval vote by Kencana Petroleum Berhad’s shareholders.
The cash and share swap deal will see special-purpose vehicle Integral Key Berhad (IKB) acquire all the assets and liabilities of Kencana and SapuraCrest for RM5.98 billion ($1.88 billion) and RM5.87 billion ($1.84 billion) respectively.
The merger is expected to be completed by the end of February 2012.
Kencana Group CEO Dato’ Mokhzani Mahathir said, “Our current focus is on unlocking synergies as a merged entity to ensure we have the right capabilities to secure the larger, more complex projects out there. Our combined capabilities make us a full-fledged, integrated EPCIC player with a robust value chain and expanded asset base, with strong synergies derived from premium, end-to-end turnkey projects that effectively utilize the expertise, best practices and capabilities of both companies.”
The RM11.85 billion ($3.71 billion) merged entity will be jointly helmed by Dato’ Mokhzani Mahathir as executive vice-chairman and Dato’ Seri Shahril Shamsuddin as president and Group CEO.
The proposed board of directors of the merged entity has been selected from among existing directors of both entities and will comprise Chairman Dato’ Hamzah Bakar, Yeow Kheng Chew, Chong Hin Loon, YM Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin, Shahriman Shamsuddin and Mohamed Rashdi Mohamed Ghazalli.