PETALING JAYA: Transocean Holdings Bhd has made an offer to buy a 40% stake in loss-making Enfrasys Consulting Sdn Bhd (ESSB), which is involved in system integration and software engineering, for RM20mil.
In a filing with Bursa Malaysia, Transocean said it would issue 20 million shares at an issue price of RM1 per share to acquire the stake in ESSB.
“In conjunction with the proposed acquisition, the board is also considering to undertake equity fundraising exercise, ” it said.
Shares in Transocean were last traded at 88 sen per share prior to its suspension that was requested for the material announcement.
It will resume the trading of its shares today.
The logistics company said the issue price of RM1 per share represents about 18.84% premium after taking into consideration the five-day volume weighted average market price of its share price of 84.15 sen per share.
“The purchase consideration is based on 10 times the guaranteed profit after tax of ESSB for the financial year ending Dec 31,2021 (FY21) of RM5mil, ” Transocean said.
For the FY20, ESSB posted losses of RM181,642 on the back of RM32.92mil in revenue. Its asset per share stood at 35.76 sen.
Transocean said the proposed acquisition would allow the group to venture into the business of providing system integration and software engineering works, tap into the expertise of ESSB to enhance the company’s information technology systems and create additional income streams.
“Barring any unforeseen circumstances, the proposed acquisition is expected to contribute positively to the future earnings and improve the financial position of Transocean, ” the company said.
The offer letter will not have any material effect on the earnings per share, net assets per share, gearing and share capital of the company for FY2021 as well as the substantial shareholders’ direct and indirect shareholding.“The company will make a detailed announcement upon the execution of the definitive agreements in compliance with the requirements of the main market listing requirements, ” it said.
For FY20, Transocean posted a loss of RM2.83mil, which is lower than the RM5.61mil loss a year earlier. Revenue for the period was lower at RM17mil compared with RM20mil previously.