Malaysia: UMW-OG to buy Icon Offshore

Malaysian offshore drilling services company UMW Oil & Gas (UMW-OG) has entered into a deal to buy the compatriot offshore support vessel provider, Icon Offshore. 

UMW said in Thursday’s Bursa Malaysia announcement that the purchase would consist of two parts.

Namely, the company has proposed an acquisition of 497,768,820 shares in Icon Offshore for a price of around $56 million. The shares in question represent a 42.3 percent interest in Icon held by equity firm Ekuiti Nasional Berhad.

The remaining 57.7 percent of shares not owned by UMW after the transaction will be acquired through a mandatory general offer.

The company also plans to buy 95.5 percent of equity interest in Orkim, an operator of clean petroleum product transportation vessels, also held by Ekuinas, for a cash consideration of $106.2 million.

UMW explained the rationale behind the acquisition as “an opportunity to spearhead the call for industry consolidation involving Malaysia’s largest jack-up rig player, largest pure play owner and operator of offshore support vessels, and the largest owner and operator of CPP marine transportation vessels in the country.”

The combination of these three companies is expected to create a major integrated offshore service provider across the oil and gas chain, comprising of seven jack-up rigs, one semi-submersible rig, 37 OSVs, 14 clean petroleum product vessels and two liquefied petroleum gas marine transportation vessels.

Offshore Energy Today Staff

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