Deleum expands Thai footprint with RM60m oilfield acquisition
According to a filing with Bursa Malaysia, its indirect subsidiary Deleum Oilfield Solutions (Thailand) Co Ltd (DOST) has entered into a sale and purchase agreement with Thailand-based MPC Future Co Ltd to acquire the latter's oil and gas business and assets — excluding its e-line operations.
The RM60 million consideration comprises the issuance of new ordinary and preference shares in DOST to MPC, amounting to a combined 48.34% stake in the Thai entity, and a cash payment for the remainder of the deal value.
The cash portion will be funded via bank borrowings from Deleum's wholly owned unit, Deleum Services Sdn Bhd (DSSB).
As part of the deal structure, DOST will also issue a 1.73% stake to a local entity controlled by Suthee Chivaphongse — who is currently a director and major shareholder of DOST — for THB10 million under a separate subscription agreement.
This related party transaction is intended to retain local expertise and is not expected to materially affect the group's financial position.
The target business comprises slickline, hydraulic workover and wellhead maintenance services, as well as related assets valued at about RM50 million as of June 2024.
The acquisition includes operational contracts, equipment, and leases tied to the business.
Upon completion, DOST's paid-up capital will rise to THB576.8 million, with DSSB retaining control by holding a 49.93% stake and the right to appoint a majority of directors.
The remaining shares will be held by MPC and the Suthee-controlled entity.
The acquisition is subject to several conditions precedent and completion is expected in the second half of 2025.
Deleum said the acquisition is a strategic move to grow its presence in Thailand and achieve operational synergies through DOST.
The proposed transaction will strengthen DOST's oil and gas services segment and is expected to be value-accretive to the group over the long term.
The transaction will not impact Deleum's share capital or shareholder structure, but may raise its gearing level. Nonetheless, the board believes it remains at a manageable level.
The board and audit committee concluded that both the acquisition and related party subscription are fair, on commercial terms, and in the best interest of the group and minority shareholders. — TMR
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