Deleum Acquires 70 Pct Stake In Indonesia’s PT OSA For RM31.3 Mln
KUALA LUMPUR, Dec 5 (Bernama) -- Deleum Bhd’s (Deleum) wholly-owned subsidiary, Deleum Services Sdn Bhd, today has signed a share purchase agreement to acquire a 70 per cent stake in PT OSA Industries Indonesia Pte Ltd (PT OSA) for US$7 million (RM31.3 million).
This follows the signing of the heads of agreement in March this year between the two oil and gas services companies.
Deleum group chief executive officer Rao Abdullah said the acquisition unlocked new opportunities for the combined entity.
“Our expanded team and established presence across the two countries present invaluable opportunities not only to tap into the dynamic valves market in Southeast Asia but also to extend our coverage beyond existing product lines.
“The ongoing and planned investments in oil and gas infrastructure, coupled with increased energy demands resulting from accelerating economies, augur well for the prospects of the valve sector in the region,” he said at the signing ceremony today.
As part of the agreement, PT OSA will provide a profit guarantee of US$2.7 million (RM12.1 million) cumulatively across the financial years ending 31 December 2024 and 2025.
PT OSA director Ong Siow Aik said he is confident the profit guarantees will be met over the two years.
“I wouldn’t have signed the agreement either if I wasn’t confident in that,” he said.
When asked why he sold the company’s majority share, Ong said that he wants PT OSA to go beyond its current state.
“For the last couple of years, I’ve been looking for someone, and we managed to connect with Deleum.
“The reason is that I wanted to find someone who not only wanted to enter the Indonesian market or had the money to do so but someone with the drive and expertise, especially in our area, to take it far beyond what I could,” he added.
Deleum’s purchase consideration of US$7 million will be fulfilled via internally generated funds and bank borrowings.
The acquisition is expected to be completed within the first half of 2025, barring unforeseen circumstances and upon satisfaction of the identified conditions precedent.
Meanwhile, in a Bursa Malaysia filing today, Deleum stated that PT OSA is the sole channel partner for Baker Hughes’ valves in Indonesia.
“The proposed acquisition is expected to strengthen the existing technical expertise and capabilities of Deleum’s valve management segment.
“The expanded team and established presence across Malaysia and Indonesia provide Deleum with invaluable opportunities to tap into the dynamic valves market in Southeast Asia,” it added.
-- BERNAMA