Malaysia-listed bunkering firm Straits Inter Logistics (Straits) Tuesday received approval from exchange holding company Bursa Malaysia to acquire a 55% majority stake, or 8.25 million ordinary shares, in Tumpuan Megah Development for the consideration of RM35.75 million (USD $8.77 million).
Straits on 7 June, 2018 announced plans for acquiring Tumpuan Megah, a Malaysia bunkering firm that offers oil bunkering services business, which includes ship-to-ship bunkering, barging operations and dealing in oil and petroleum products.
Tumpuan Megah currently has operations at eight ports in Malaysia, all of which are licensed under Petroleum Development Act 1974, through seven bunkering vessels ranging between 500 to 4,700 dwt.
The proposed acquisition will enlarge the customer base of Straits by tapping into the existing customer base of Tumpuan Megah, allowing Straits to capture larger market share and increase its market presence in the bunkering services industry in Malaysia.
“The proposed acquisition would enable Straits to have an immediate expansion in respect of its fleet size and assets base from the current two vessels to nine vessels for its operations,” Dato’ Sri Ho Kam Choy, Straits Inter Logistics Berhad Group Managing Director, earlier said.
“With such expansion of asset base, Straits is capable to undertake higher volume of bunkering services, thereby increase its operational capacities.”
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Photo credit: Straits Inter Logistics
Published: 8 August, 2018
