Part A Background of the SapuraCrest Petroleum Berhad “SapuraCrest Petroleum Berhad was established more than 35 years ago on 3 March 1979. Later it was listed on the Bursa Malaysia Securities Berhad’s Second Board on 15 October 1992. It is assumed that the existing name of the company was given due to completion of Sapura Technology Berhad’s acquisition of UEM Land Sdn Bhd’s controlling stake in the company in the second quarter of 2003. Later on 21 February 2006, The SapuraCrest Petroleum was listed on the Main Board of Bursa Malaysia Securities Berhad. The SapuraCrest Group operates in the oil and gas industry and its operating areas includes: offshore drilling, installation of pipelines and facilities, marine services, offshore and nearshore …show more content…
Now it holds 879,037,074 shares or 14.67% of the total shares. Former largest shareholder of Kencana Petroleum, Khasera Baru Sdn Bhd now is only at the third place among the largest shareholders of SapuraKencana Petroleum and it holds 454,573,862 shares or 7.59% of the total shares. The type of corporate restructuring that was conducted by SapuraKencana Petroelum. Since the merger that happened between SapuraCrest Petroleum and Kencana Petroleum was the merger between two companies that provides different services for one specific product, which is oil in this case, it called a vertical merger exercise. According to Investopedia.com (n/a), vertical merger occurs when two companies operating at different level, providing different services for one finished product merge their operations. So since, SapuraCrest and Kencana providing different kind of services, but still for one same product it is considered like a vertical merger. The benefits of it could be an increase in profitability and also a possibility of decreasing