Serba Dinamik eyes global O&G parts manufacturer
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
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.