Uzma increases stake in profitable subsidiary for RM52.8mil

KUALA LUMPUR: Uzma Bhd has entered into a deal to increase its stake in a profitable oil and gas subsidiary that provides well pumping and coil tubing services.

Uzma, in filing with Bursa Malaysia on Wednesday said would acquire an additional 1.01 million shares in Setegap Ventures Petroleum Sdn Bhd (SVP) for RM52.8mil cash.

The purchase would be funded via bank borrowings.

The deal to acquire the shares from SVP's founder Datuk Nasri Nasrun would raised Uzma's equity interest in Setegap from 64% to 86%.

The remaining equity interest in SVP is owned by Mohd Zulhaizan Mohd Noor.

"The proposed acquisition would allow the group to consolidate a higher percentage of SVP’s earnings," Uzma said.

SVP reported a profit after tax of RM23.65mil for the 18-month ended June 30, 2018 and RM21.28mil for the year ended June 30, 2019.

As at Jan 29, 2020 29 January 2020, SVP has an order book of approximately RM700mil for the next five years comprising, amongst others, contracts for coiled tubing services, well pumping services, integrated well services and deployment of reinforced thermoplastic pipe.

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