PETALING JAYA: Avangaad Bhd, formerly known as E.A. Technique (M) Bhd, is proposing to acquire marine service provider Bumi Jaya Shipcare Sdn Bhd (BJSSB) and two tugboats (Vessel PW Tekun and Vessel Bumi Jaya) for RM49mil.
In a filing with Bursa Malaysia, Avangaad said it has inked a term sheet with Johor Ship Care Sdn Bhd, Impresif Rezeki Sdn Bhd, Ben Bakar Abdullah and K Sugumaran Kolanthai, who are the vendors of the proposed acquisition of the aforementioned assets.
Last month, E.A. Technique exited from its Practice Note 17 status.
Avangaad said the deal will strategically expand the company’s vessels fleet, enhancing its capability to deliver higher-value maritime services.
With a focus on securing additional long-term contracts, the group said it aims to scale operations, strengthen service capabilities and drive resilient growth to ensure long-term financial stability.
Pursuant to the term sheet, Avangaad said the entering of a definitive agreement between the parties of the proposed acquisition is conditional upon certain conditions. The first being the completion of the financial and legal due diligence on BJSSB and vessels to the satisfaction of Avangaad.
The other conditions include the removal of the investment in Peninsular Mooring Sdn Bhd (PMSB) by the vendors and BJSSB extending its tug contract for a minimum of one year on its offshore services.
BJSSB holds a 49% stake in PMSB. Avangaad said it does not intend to acquire the 49% stake in PMSB.
The proposed acquisitions are expected to be completed by the third quarter of 2025.
Avangaad closed one sen higher at 29 sen per share.
