SAPURA Holdings Sdn Bhd intends to dispose of its entire stake in Sapura Energy Sdn Bhd to Crest Petroleum Bhd in a bid to rationalise its activities in the oil and gas industry.
The advisers are still hammering out the details of the deal, but there is talk that the purchase would be satisfied by part cash and an issue of shares.
The plan is deemed beneficial for both as Sapura Energy will become a wholly-owned subsidiary of Crest, resulting in better rationalisation and greater focus of business activities to tap opportunities in the marketplace, a source said.
It will also strengthen the Sapura Group's footing in the upstream and downstream sectors of the oil and gas industry,'' the source added.
Sapura Energy provides operations and maintenance services for the oil and gas, marine, and power utility industries.
The move by the Sapura Group to inject Sapura Energy into Crest is aimed at expanding the latter's portfolio of businesses in the provision of operations and maintenance services for the oil and gas, marine and power utility industries to ensure it a steady stream of income.
Sapura Energy is a profitable unit of the Sapura Group while Crest is still in the red. However, efforts are being made to enhance the bottom lines.
Sapura Energy has a current order book of RM400mil and is on the lookout for new projects. Its forte is marine engineering services and it has contracts with most of the major oil and gas firms in the country.
For the financial year ended Jan 31, 2003, Sapura Energy reported an unaudited net profit of RM14mil on the back of RM260mil turnover. Net earnings per share (EPS) was 466.7 sen. These compare with RM936,000 in net profit, RM37mil in turnover and 31.2 sen in EPS a year earlier.
Crest, on the other hand, suffered an after-tax loss of RM115mil at the end of last year.
Sapura Holdings has about 50% equity in Sapura Telecommunications Bhd, which bought 38.5% equity interest in Crest earlier this year from Renong Bhd for RM105.2mil.
The purchase triggered a mandatory general offer (MGO) under the Malaysian Code of Take-Overs and Mergers for Sapura Telecommunications to buy up the remaining shares it did not own in Crest at RM3.60 a share.
Sapura Telecommunications, which is expected to send out the MGO documents today, will be funding the MGO via internal funds and borrowings. A full take-up will cost Sapura Telecommunications about RM200mil, which combined with its earlier payment for the 38.5% stake in Crest, would take its total purchase price to about RM305.2mil.
The MGO offer closes early next month; and only after the closure can an announcement on the sale of Sapura Energy to Crest be expected.
The purchase of Crest gives the Sapura Group control over four listed companies: Sapura Telecommunications (involved in information and communications technology); Uniphone Telecommunications Bhd (property and education via recently purchased Apiit Sdn Bhd); Sapura Motors Bhd (automotive and electronics components supply); and Crest (oil and gas).
Sapura Energy chairman Datuk Hamzah Bakar is also a director of newly listed oil and gas engineering specialist SCOMI GROUP BHD. Before joining Sapura Energy, he was with Petronas for over 20 years.
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