Serba Di­namik eyes global O&G parts man­u­fac­turer

New Straits Times - - Business / News -

KUALA LUMPUR: Serba Di­namik Hold­ings Bhd is on ex­pan­sion­ary mode, and has made plans to ac­quire an in­ter­na­tional parts man­u­fac­tur­ing en­tity in the oil and gas in­dus­try.

Fol­low­ing the ac­qui­si­tion, the com­pany will be­come a one-stop en­gi­neer­ing so­lu­tion provider of en­gi­neer­ing, pro­cure­ment, con­struc­tion, and com­mis­sion­ing (EPCC) work, op­er­a­tions and main­te­nance ser­vices as well as parts sup­plier.

Group chief ex­ec­u­tive of­fi­cer Datuk Dr Mohd Ab­dul Karim Ab­dul­lah said the ac­qui­si­tion would ex­pand its ca­pa­bil­ity to man­u­fac­ture and trade parts as well as boost the group’s prof­itabil­ity.

“Ac­qui­si­tion plans are there. We have un­der­taken some in­tense dis­cus­sions and ne­go­ti­a­tions. Some are al­most at the tail end, mean­ing a trans­ac­tion will hap­pen and we will fol­low the nec­es­sary reg­u­la­tory re­quire­ments in terms of mak­ing an­nounce­ments.

“Our tar­gets are parts man­u­fac­tur­ers. The en­ti­ties we are look­ing at are based in Europe, the United States and the Mid­dle East.

“The suc­cess­ful ac­qui­si­tion will pro­vide mar­gin im­prove­ment to the group, re­duc­ing costs by one to two per cent and en­able mar­gin gen­er­a­tion of five to 10 per cent by trad­ing of parts,” he said.

Half of Serba Di­namik’s cap­i­tal ex­pen­di­ture bud­get of RM95 mil­lion this year has been al­lo­cated for the ac­qui­si­tion cost.

The group is ex­pected to make an an­nounce­ment on the ac­qui­si­tion next month. Early this year, Serba Di­namik ac­quired a 40 per cent stake in Kon­sor­tium Amanie JV Sdn Bhd for RM34 mil­lion.

The ac­qui­si­tion has en­abled the award of EPCC works worth about RM289.72 mil­lion for the com­pany. Amir Hisyam Rasid

PIC BY AIZUDDIN SAAD

Serba Di­namik group chief ex­ec­u­tive of­fi­cer Datuk Mohd Karim Ab­dul­lah (right) with group chief fi­nan­cial of­fi­cer Syed Nazim Syed Faisal at the com­pany’s an­nual gen­eral meet­ing in Kuala Lumpur yes­ter­day.

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