OVH shareholders approve BGB acquisition for RM10M

KUCHING: Ocean Vantage Holdings Bhd’s (OVH) shareholders gave their nod for the company to acquire Bina Gemilang Bersatu Sdn Bhd (BGB) for RM10 million and its proposed diversification into businesses, including construction and related activities, at its extraordinary general meeting on Monday (September 14).

BGB will be acquired from OVH’s managing director Kenny Ronald Ngalin and George Henry, with the purchase to be satisfied entirely via the issuance of 50 million new ordinary shares at 20sen per share, in a related party transaction.

Upon completion of the acquisition, BGB will become a wholly-owned subsidiary of OVH. 

BGB is principally involved in construction works, and its business will be complementary to the group business on several factors which include:

 * the enlarged OVH could leverage on the strength of BGB in relation to its management team, resources, industry knowledge and expertise within the construction industry to enhance its service offering by extending end-to-end construction services;

* expansion of customer base of the enlarged OVH group to reach a larger market within the oil & gas and construction industries, and

* the group could derive cost savings by utilizing the pooled resources of the enlarged OVH group by streamlining duplicated functions as well as improve procurement efficiencies by leveraging the combined supplier network for the enlarged group.

On the group’s diversification move to venture into the construction business, OVH said this is in line with the group’s business strategy to generate additional income stream, and reduce the group’s reliance on its existing core business.

The group is involved in engineering, procurement and commissioning (EPC) services in the energy sector, supply of manpower, materials, tools and equipment as well as drilling rig charter services.

According to OVH, the diversification is complementary to the group’s core competency in EPC and project management and its establishment in the upstream oil and gas sector as the group would be able to extend end-to-end construction services to its customers who are involved in the existing businesses.

Furthermore, the company is able to enhance the engineering expertise and scale up the engineering resources through pooling of the group’s talents and facilitation of knowledge transfer across different business segments which is expected to create business synergies within the group.