Straits gets nod for bunker firm acquisition

PETALING JAYA: Straits Inter Logistics Bhd’s acquisition of 55% stake in fellow bunker player, Tumpuan Megah Development Sdn Bhd, for RM35.75mil has been approved by Bursa Malaysia.

In a filing with the local bourse, Straits said Bursa had approved the listing of 116.46 million consideration shares for the proposed acquisition, along with 36.79 million shares for its private placement.

The proposed acquisition comes with a profit guarantee of RM10mil by the vendor for the financial year ending Dec 31, 2019 (FY19) and FY20. Based on the 55% stake to be owned by Straits, it will be entitled to a yearly profit guarantee of about RM2.75mil.

In an earlier announcement dated June 7, Straits had said it was acquiring 8.25 million shares, or 55%, of Tumpuan Megah from Raja Ismail Raja Mohamed for RM35.75mil.

This will be satisfied via a combination of cash payment of RM7.8mil and the issuance of 116.46 new shares of Straits at an issue price of 24 sen, amounting to RM27.95mil.

There was also a private placement of 36.79 million shares at 24 sen per share to Captain Tony Tan Han, primarily to satisfy the cash consideration for the proposed acquisition.

Tumpuan Megah commenced its bunkering services in 2013 and is principally engaged in oil bunkering services, which include shipto-ship bunkering, barging operations and dealing in oil and petroleum products.

At present, Tumpuan Megah has operations in eight ports in Malaysia, which include Pasir Gudang Port, Port of Tanjung Pelepas, Johor Baru Port, Kuantan Port, Kemaman Port, Kuala Terengganu Port, Labuan Port and Miri Port.