News Bits | 6 Nov 2012

Highlights of the day

§  SapuraKencana Petroleum (Quick Bits): Quantum leap into the rigs market (Maintain HOLD, TP: RM2.46) [download report]

In an announcement to Bursa Malaysia, SapuraKencana Petroleum Berhad (SAKP) has entered into a non-binding memorandum of understanding (MOU) with Seadrill Limited (Seadrill) to acquire the tender rig businesses of Seadrill for an enterprise value of RM8.8bn (USD2.9bn) via a combination of borrowings, cash and equities. This latest corporate development is a springboard for SAKP to venture and gain global market share in the tender rigs segment over the mid to longer term horizon. In the meantime, we do not have sufficient numbers to quantify any earnings enhancement or dilution to SAKP. We maintain our earnings forecast for now. Maintain Hold with a target price of RM2.46 based on 20x CY13 EPS of 12.3 sen. 

 

Other reports

§  Newz Bits [download report]

 

Other Malaysian news

§  Parkson Holdings: Parkson Asia forms JV for Myanmar venture

§  MAS: Close to finalising funding requirements

§  KFC Holdings: Gets shareholders’ nod for privatisation

§  Alam Maritim: Gets RM21m Carigali Hess job

§  Muhibbah: To meet official receiver of APH next week

§  Plenitude: Targets RM300m sales for 2013

§  Tiger Synergy: Hayat Maya enters the picture

§  Automotive: Fernandes teams up with Renault to produce sports vehicle

§  Construction: MRT raises Bumi job target for SBK line

§  Steel: Anti-competitive probe will take months

§  Semiconductor: HDD sales lower in 3Q

 

Global news

§  US: Service industries show expansion’s resilience

§  China: Non-manufacturing industries signal rebound ahead

§  Indonesia: Economic growth exceeds 6% as investment climbs

§  Global: G20 carves out some more wiggle room on austerity plans

 

 

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