EKUINAS ENDS DEALS
Exercise requires much larger capital than initially envisaged, says CEO
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EKUITI Nasional Bhd (Ekuinas) has terminated two share purchase agreements with UMW Oil & Gas Corp Bhd (UMW-OG) on the proposed consolidation exercise involving UMW-OG, Icon Offshore Bhd and Orkim Sdn Bhd.
Ekuinas chief executive officer (CEO) Syed Yasir Arafat said it arrived at the decision after considering the significant capital requirements of UMW-OG, which necessitated a far larger recapitalisation than initially envisaged and which would have an adverse effect on the economics of the proposed transaction.
“In the meantime, we will support our investee companies, Icon and Orkim, in executing their strategies to grow their businesses in the pursuit of shareholder value creation,” he said in a statement yesterday.
Earlier this year, Ekuinas and UMW-OG announced that they were consolidating their oil and gas (O&G) businesses under UMW-OG.
They had said the enlarged O&G businesses under UMW-OG would lead to the creation of a major integrated service provider across the industry’s value chain.
The entity would have seven jack-up rigs, one semi-submersible rig, five hydraulic workover units, 37 offshore support vessels, 14 clean petroleum