Ex­er­cise re­quires much larger cap­i­tal than ini­tially en­vis­aged, says CEO

New Straits Times - - Business -


KUALA LUMPUR bt@me­di­aprima.com.my

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

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