Crest picks advisers to study Sapura Energy buy


  • Business
  • Thursday, 26 Jun 2003

By B.K. SIDHU

CREST Petroleum Bhd will appoint advisers in July to study the feasibility of it buying Sapura Energy Sdn Bhd from Sapura Holdings Sdn Bhd, said Crest managing director Razman Ariffin.  

On completion of the due diligence, the Crest board would decide whether to go ahead with the proposal, aimed at rationalising the Sapura group's oil and gas operations. 

“There are still a lot of steps in such a proposal and the Crest board has not reached any conclusion yet. We are still in the early stages and we will appoint external consultants to advise us,” Razman said after the company's AGM in Kuala Lumpur yesterday.  

He said it was too early to say whether it would be a cash or share swap deal.  

Razman agreed that it would “make business sense'' for Crest and Sapura Energy to merge “in terms of business synergies and complementary activities,'' but said a lot depended on “considerations and economic viability''.  

He also said that “it was not so much about Sapura Energy buying into Crest as Sapura Energy being acquired by Crest''.  

Razman reckoned that the whole process could take about five to six months. Earlier this year, Sapura Telecommunications Bhd bought a 38.5% stake in Crest, and last week completed its mandatory general offer for Crest shares at RM3.60 a share, which raised its stake to 63.72%.  

Sapura Telecommunications is 50% owned by the Sapura group, which in turn controls the entire equity in Sapura Energy.  

Crest is actively involved in the oil and gas sector locally and has an order book worth RM400mil currently. It is on the lookout for new contracts and believes it can secure a third of the RM2bil worth of deals in the oil and gas sector being given out in the coming months.  

Sapura Energy provides operations and maintenance services in the oil and gas, marine and power utility industries. It was reported that its order book was also worth about RM400mil currently.  

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