Bumi Armada is said to weigh buying MISC Offshore energy assets


Bumi Armada Bhd., an oil field services provider controlled by Malaysian tycoon T. Ananda Krishnan, is considering buying MISC Bhd.’s offshore energy business, according to people with knowledge of the matter.

Talks between the companies are at an advanced stage and a non-binding agreement may be signed as soon as this week, said the people, asking not to be identified because the process is private. While details such as valuation are still being discussed, a potential transaction will likely involve a share swap that will give MISC a significant minority stake in Bumi Armada, the people said.

Shares of Bumi Armada are unchanged this year in Kuala Lumpur, giving it a valuation of RM2.9bil. MISC’s stock has risen 9%, valuing the firm at RM35.5bil.

Deliberations are ongoing and the parties could still decide against pursuing the deal, the people said. A representative for Bumi Armada didn’t immediately respond to a request seeking comment, while MISC declined to comment.

Bumi Armada has been expanding in Asia in areas such as upstream and low-carbon solutions to support its energy transition plans, according to its website. Its assets include floating production storage and offloading, known as FPSOs and liquefied natural gas facilities. Ananda Krishnan owns 34.6% of Bumi Armada through Objektif Bersatu Sdn.

State-owned oil company Petroliam Nasional Bhd., commonly known as Petronas, controls MISC with a 51% stake. - Bloomberg

Separately, Bumi Armada announced that it had successfully secured a two-year firm period extension for the Te Giac Trang field located offshore Vietnam, via the execution of a bareboat charter contract amendment addendum between its wholly owned subsidiary, Armada TGT Ltd and Hoang Long Joint Operating Co.

The extension commences on Nov 15, 2024 and will expire on Dec 7, 2026. The aggregate contract value is approximately US$74.4mil.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Bumi Armada , MISC , offshore , energy

   

Next In Business News

Oil prices ease on stronger greenback, fears of higher output
Wasco launches Asean’s first sustainable finance framework with US$25mil green loan
Khazanah maintains vision of investing in start-ups, says Amir Hamzah
Major Apple supplier Foxconn's Q3 profit up 14% on AI boom
All eyes on China at APEC event
Asia shares stumble; long-end US bond yields rise with dollar
MAA projects Malaysia's 2024 vehicle sales to increase to 800,000 units
MISC's net profit slips to RM338.9mil in 3Q
Bursa falls as China's economy weighs on regional sentiment
Ringgit opens flat following US inflation report

Others Also Read