KUALA LUMPUR: Deleum Bhd
has expanded its footprint in the power and machinery business in Indonesia via the acquisition of 70% equity interest in PT OSA Industries Indonesia (OSAII) from OSA Industries Pte Ltd for US$7mil (RM31.02mil).
OSAII is a supplier of valves and valve maintenance services in Indonesia, including for the oil and gas industry. Since 2017, it has been the sole channel partner for Baker Hughes valves, such as safety and control valves, ball valves and actuators.
In a filing with Bursa Malaysia, Deleum said OSAII's business runs parallel to that of its indirect subsidiary Penaga Dresser Sdn Bhd, thus presenting the opportunity to leverage knowledge, competencies and capabilities across both entities, expand the availability of resources and tap into economies of scale.
"This strategy is expected to create synergies, fortifying the company’s financials and in turn its shareholders’ value.
"The proposed acquisition is with the intent that the synergies expected to be generated between OSAII and Deleum Services Sdn Bhd will transform the enlarged Deleum group into a key contender for projects in Indonesia," it added.
Deleum said the acquisition will be funded via a combination of internally generated funds and bank borrowings.
OSAII will provide a profit guarantee of US$2.7mil cumulatively across financial years ending Dec 31, 2024, and 2025. Barring unforeseen circumstances, the acquisition is expected to be completed within the first half of 2025.
