March 1, 2012 / 7:31 AM / 6 years ago

Malaysian banks work on 2-3 bln rgt loan for SapuraCrest merger-basis point

KUALA LUMPUR, March 1 (Reuters) - Three to four Malaysian banks are working on a bridge loan of about 2 to 3 billion ringgit ($667 million-$1 billion) to back a merger between two oil and gas services firms, a Thomson Reuters publication, Basis Point, reported on Thursday.

Basis point quoted sources as saying said the loan, which is expected to have a tenor of either two to three years, will back the 11.85 billion ringgit merger between SapuraCrest Petroleum Bhd and Kencana Petroleum Bhd.

The loan is expected to be taken out by longer term financing of seven to eight years, Basis Point added.

A source told Reuters in mid-February that the proposed listing of a combined SapuraCrest and Kencana, the largest in the Malaysian oil and gas sector, on the local bourse has been delayed to end-March or early April.

AmInvestment is the principal adviser on the merger. (Reporting By Yantoultra Ngui; Editing by Niluksi Koswanage)

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