PETALING JAYA: Deleum Bhd
’s latest divestment of an 87% stake in Deleum Technology Solutions Sdn Bhd (DTS) to Ocean Vantage Holdings Bhd aligns with the group’s strategic direction to optimise its asset portfolio and develop the value of its investments, says MBSB Research.
Both Deleum’s subsidiaries, Deleum Services Sdn Bhd and Delcom Holdings Sdn Bhd have entered into heads of agreement with Ocean Vantage to sell a collective 86.67% stake in DTS to Ocean Vantage for a total cash consideration of RM13mil.
In a note to clients, MBSB Research opined that the RM13mil in cash proceeds will be utilised for capital reallocation, which will subsequently improve Deleum’s liquidity and overall financial standing.
The funds will also provide the group with the financial flexibility to redeploy capital towards businesses and opportunities with stronger earnings visibility and growth potential, added the brokerage firm.
Regarding the risks in executing the agreement, MBSB Research noted the deal remains subject to the successful negotiation and execution of a definitive share sale agreement (SSA) within the 90-day deadline, as well as obtaining necessary financier or third-party approvals.
“If negotiations stall or approvals fail, the deal could fall through.
“Additionally, the disposal is tied to a separate agreement where the minority shareholder sells the remaining 13.33% stake to Ocean Vantage so the purchaser can achieve 100% ownership.
“Any friction or fallout in that parallel negotiation could complicate the overall transition,” MBSB Research explained.
While DTS is being divested to optimise assets, the brokerage noted that Deleum completely relinquishes its exposure to the integrated corrosion, inspection, and maintenance and construction services sector provided by DTS.
If those specific services experience an unexpected boom or higher margins moving forward, Deleum could miss out earnings-wise, added MBSB Research.
Meanwhile, since both parties have until January 2027 to negotiate and execute a definitive SSA, unless extended mutually, the brokerage noted that it made no changes to its earnings estimates for Deleum at this juncture.
As such, MBSB Research has maintained a “buy” call on Deleum with a target price of RM1.22 per share.
Deleum’s net profit for the second quarter ended June 30, 2026, dropped to RM10.34mil from RM19.59mil a year earlier, due to weaker contributions from its power and machinery and oilfield integrated services segments. Revenue fell 19.16% to RM191.49mil from RM236.88mil.
The group declared a first interim dividend of 3.5 sen per share, lower than the four sen paid a year ago, and payable on Sept 30.
For the six-month period ended June 30, 2026, Deleum’s net profit fell to RM19.30mil from RM31.99mil a year earlier, while revenue declined to RM376.42mil from RM416.30mil.
