OFFSHORE oil and gas player Alam Maritim Bhd could be looking interesting on the back of an allotment of 123 million new shares representing a 15.35% stake of its enlarged share capital to Tan Sri Quek Leng Chan and his associate Paul Poh via their vehicles Associated Land Sdn Bhd and Caprice Capital International Ltd at RM1.35 per share.
The proceeds will be used to acquire a new offshore supply vessel as well as retire some of its debt.
Here’s the interesting part. Quek has also taken a 7.7% stake or 100 million shares in Singapore’s Ezion Holdings Ltd by investing US$155mil (RM496mil). Ezion is also in the offshore vessel supply business, and owns the much sought after self-propelled jack-up liftboats.
Some believe that with Quek expanding further into the offshore business, Alam Maritim could act as a potential partner to facilitate Ezion’s expansion into Malaysia.
Ezion has a liftboat fleet that is backed by bareboat charters worth more than US1bil (RM3.2bil), which brokers say will contribute to nearly 70% of its earnings growth in 2014.
In the last one year, Quek has shown keen interest in the offshore sector. His entities have made investments in various offshore and marine players like TH Heavy Engineering Bhd and Scomi Energy Bhd.
Meanwhile, the 123 million shares issued to Quek and Poh will raise some RM166.05mil.
On the utilisation of the proceeds, Alam Maritim said some RM67mil would be allocated to acquire a new vessel, RM95.08mil as repayment of bank borrowings and RM3.8mil for expenses related to the proposed share issuance.
Alam Maritim’s gearing will be reduced to 0.67 times after the share placement from 1.07 times as at Dec 31, 2012.
The comments above do not represent a recommendation to buy or sell.
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