Malaysia's Dayang Enterprise Holdings, with subsidiaries providing offshore oil and gas services, entered into a conditional share sale agreement with Affin Hwang Asset Management Berhad to acquire 5.74 percent shares in local offshore marine services firm Perdana Petroleum Berhad (PPB) for $18.7 million (MYR 66.60 million), the company said in a filing with stock exchange Bursa Malaysia Thursday.
Upon completion of the share purchase, Dayang's stake in PPB will rise to 35.51 percent, triggering a mandatory general offer (MGO) for the remaining shares not owned by the firm.
The acquisition "represents an opportunity for Dayang and its subsidiaries (Dayang Group) to pursue its expansion strategy and long-term objective of evolving into a market leader for the provision of hook-up construction and commissioning (HUCC) services within the O&G industry. PPB is a strategic fit to Dayang's HUCC business and the successful completion of the Proposed MGO may result in the combined entity becoming one of the largest integrated HUCC players in the market. In addition, the Proposals also fowards Dayang's aspiration of becoming a regional player within the O&G industry," the company said.
In addition, Dayang believed that the acquisition of PPB could help serve the long-term contracted jobs of the company and provide operational and cost synergistic benefits, while boosting the competitive advantage of the combined business entity.
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