KUALA LUMPUR, Feb 5 Uzma Bhd’s (Uzma) unit, Tenggara Analisis Sdn Bhd (Tenggara), has acquired 1.01 million ordinary shares in Setegap Ventures Petroleum Sdn Bhd (SVP) for RM52.8 million in cash.
The purchase shall be funded by bank borrowings, the oil and gas (O and G) company said in a filing with Bursa Malaysia today.
The proposed acquisition will allow the group to consolidate a higher percentage of SVP’s earnings.
Since Tenggara’s earlier acquisition of 18.98 per cent equity interest in SVP in January 2015, SVP has recorded a commendable performance against the backdrop of falling crude oil prices from mid-2014 to early 2016, which adversely affected the earnings of the entire value chain of the local O and G industry, it said.
As at Jan 29, SVP has an order book of approximately RM700 million encompassing the next five years, comprising contracts for coiled tubing services, well pumping services, integrated well services and deployment of reinforced thermoplastic pipe, among others.
Moving forward, Uzma said SVP plans to expand its market share locally and internationally as well as invest in the research and development of well intervention and stimulation capabilities.
SVP will continue to work towards becoming a comprehensive well servicing and maintenance provider, as well as a provider of production enhancement solutions, it added.
Source: BERNAMA (News Agency)