KUALA LUMPUR: Kencana Petroleum Bhd and SapuraCrest Petroleum Bhd could be looking at a merger in which shares of both companies would be absorbed by a newco and shareholders of the both the entities will get shares in the new company.
The merger would see the combined entity having a combined market capitalisation of more than RM10.87 billion, based on the pre-suspension prices.
Trading in the securities of Kencana and SapuraCrest had been halted from 9am to 5pm on Monday, July 11 pending a material announcement.
In separate announcements to Bursa Malaysia on July 11, the two companies said they had requested for a trading halt in their securities.
Both the companies said they had received letters from Maybank Investment Bank Bhd and CIMB Investment Bank Bhd on behalf of Integral Key Sdn Bhd (IKSB) informing it that IKSB was proposing a corporate exercise involving Kencana and SapuraCrest.
Kencana and SapuraCrest said full details of the corporate exercise would be announced in due course.
Kencana was last traded at RM2.80 while SapuraCrest closed at RM4.49 last Friday.