Bumi Armada, MISC sign MoU to explore offshore business merger


KUALA LUMPUR: Bumi Armada Bhd has signed a non-binding memorandum of understanding (MoU) with MISC Bhd to explore the possibility of merging with the latter’s offshore business through an all-share transaction.

In a filing with Bursa Malaysia today, Bumi Armada said the merged entity arising from the proposed merger would remain listed on Bursa Malaysia Securities Bhd.

It said the combined entity would be positioned as one of the leading floating production businesses globally with the scale, resources and financial capacity to compete in the growing and capital-intensive offshore floating production segment.

"Further, the proposed merger will establish a Malaysian-based sector-focused entity that leverages the combined talent pool, project development and engineering capability, and know-how of MISC’s offshore business and Bumi Armada.

Bumi Armada said the MoU is effective for nine months from the date of signing unless extended or terminated earlier by mutual agreement.

It said a detailed announcement would be issued in line with Bursa Securities’ Main Market Listing Requirements if the merger proceeds and terms are agreed upon.

"According to the MoU, both parties will work exclusively and in good faith towards the merger, and if both parties decide to proceed after further evaluation and due diligence, they may enter into negotiations on the definitive agreement(s),” it added. - Bernama

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

Bumi Armada , MISC , MoU , merger , offshore sector

   

Next In Business News

PETRONAS’ PIC investments now at RM7.5bil
KIP-REIT buys retail asset in Perak
Stable outlook for banking sector
Sunway-REIT posts positive showing
Teo Seng posts stronger third-quarter results
WCE Holdings shareholder in warrant exercise
MR DIY announces improved dividends for 3Q
PM Anwar to participate in APEC CEO Summit, meet Google
CapitaLand Malaysia Trust appoints Yong Su-Lin as CEO designate
Keyfield's net profit higher at RM81.1mil in 3Q

Others Also Read