SapuraKencana a 'buy', says OSK Invt

Publish date: Mon, 30 Apr 2012, 09:59 AM
OSK Investment Bank started SapuraKencana Petroleum with a "buy" call as this proposed merger between SapuraCrest Petroleum and Kencana Petroleum will attract bigger and more lucrative oil and gas projects in domestically and internationally.

The research unit of OSK said assuming if SapuraCrest closes at RM5.14 per share and Kencana at RM3.40 on April 30, the merged entity will have a mark value of Rm11.5 billion that makes it one of the top 30 Malaysian listed firms.

Shares of both companies will cease trading later in the day.

OSK put a fair value of RM2.88 per share for the merged entity, which gives the firm a market capitalisation of RM14.4 billion. -- Reuters

Labels: KENCANASAPCRES

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Raymond Tiruchelvam

if sapcres at RM5.14/share and kencana at RM3.40/share, then the market cap is RM11.5b and post-merger OSK targets a market cap of RM14.4b... Does this mean purely on the merger there is an increase in value by RM2.9b ??? This cannot be... not that much premium at least

2012-04-30 19:16

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