KUALA LUMPUR: Reservoir Link Energy Bhd
(RLEB) has proposed to acquire the remaining 70% equity interest it does not already own in Propel Maxflo Sdn Bhd for RM17.24mil, in a deal combining cash and new shares issuance.
The company said its wholly-owned subsidiary, Reservoir Link Sdn Bhd, had entered into a conditional share sale agreement with Propel Oilfield Services Sdn Bhd, a 49%-owned unit of Propel Global Bhd, for the purchase.
Of the total consideration, RM13.79mil will be paid in cash, while RM3.45mil will be settled through the issuance of 18.69 million new RLEB shares at 18.45 sen apiece.
Post-completion, Maxflo – which provides products and services for oil and gas exploration, drilling and well intervention – will become a wholly-owned unit of RLEB. The deal will strengthen RLEB’s position in the Middle East.
