Strategic takeover in focus

Ocean Vantage seeks RM15mil acquisition of Deleum Technology Solutions

KUCHING: Ocean Vantage Holdings Bhd (OVH) plans to acquire Deleum Technology Solutions Sdn Bhd (DTS) for RM15 million cash to strengthen its oil and gas services business and accelerate growth.

OVH has signed heads of agreement (HOAs) with Deleum Services Sdn Bhd and Delcom Holdings Sdn Bhd to acquire a combined 858,000 shares, representing an 86.67 per cent stake in DTS, for RM13 million.

In a filing with Bursa Malaysia, OVH said it had also entered into a separate HOA with Halmi Khalid to acquire the remaining 132,000 shares, or 13.33 per cent, for RM2 million.

Upon completion, DTS will become a wholly owned subsidiary of OVH.

DTS provides integrated corrosion and inspection services, blasting technology, maintenance, construction and modification works, as well as services for tanks, vessels, structures and piping.

OVH said the HOAs outline the principal terms for negotiations towards definitive share sale agreements (SSAs).

The signing of the SSAs and completion of the acquisition remain subject to several conditions, including relevant financier or third-party approvals and the finalisation of contractual terms.

The proposed acquisition will also require shareholders’ approval at an extraordinary general meeting to be convened later.

OVH said its board views the acquisition as an opportunity to combine complementary services and technical capabilities while reducing the learning curve associated with expanding into related business activities.

The deal is expected to broaden the group’s integrated maintenance, modification, inspection and testing services for existing oil and gas clients, particularly those in the drilling rig segment.

It would also allow OVH and DTS to leverage their respective contracts, customer relationships, technical expertise and workforce.

OVH expects the acquisition to improve earnings visibility through fixed-term contracts with renewal opportunities and contribute positively to the group’s future earnings.