Malaysia-listed Straits Inter Logistics Berhad (SIL), the parent of Tumpuan Megah Development Sdn Bhd (Tumpuan Megah), on Monday (11 January) announced its proposal to undertake a private placement and an acquisition.
In the company’s filing, it stated the private placement is of up to 20% of the total number of issued shares to third party investor(s) to be identified later, while the proposed acquisition involves another 15% stake in Tumpuan Megah Development Sdn Bhd from Datuk Mohd Suhaimi Hashim for MYR 11.71 million (MYR 2.9 million) cash.
On the private placement, the company said based on an indicative issue price of 18 sen per placement share, it is expected to raise RM28.94 million under the maximum scenario.
The private placement is expected to be completed in the second quarter of 2021 and is intended to fund the proposed acquisition, which in turn is expected to contribute positively to the group’s future earnings.
At present SIL holds a 55% stake in Tumpuan Megah. Upon completion of the proposed acquisition, Tumpuan Megah will become a 70%-owned subsidiary of SIL.
SIL explained its decision is based on Tumpuan Megah’s historical substantial contribution to the company’s profits as well as its future projected contributions.
As such, the acquisition of additional equity interest in Tumpuan Megah is expected to allow SIL to recognise a higher percentage of profit after tax (PAT) from Tumpuan Megah, translating to a more reflective margin result of SIL according to its controlling interest in Tumpuan Megah.
In addition, the SIL’s board believes the group’s increased equity interest in Tumpuan Megah will contribute positively to its future net profit, based on the technical expertise and resources of Tumpuan Megah in oil bunkering services and trading of oil and petroleum products.
Such technical expertise and resources of Tumpuan Megah include, amongst others, 62 PDA Licences for the provision of bunkering services at 32 ports (at present, Tumpuan Megah has operations at 14 ports in Malaysia), 4 PDA Licences for distribution and wholesale of petroleum products and petroleum materials, 3 PDA Licences for transportation of petroleum products by oil tanker, 12 operational vessels for providing bunkering services and an established network of customers and suppliers located in countries including, amongst others, Malaysia, Singapore, Hong Kong and Indonesia.
The proposed acquisition will enable SIL to continue to leverage on the PDA Licences and operating ports of Tumpuan Megah to allow SIL to explore business opportunities at ports where Tumpuan Megah holds PDA Licences but does not currently have operations.
Singapore bunker publication Manifold Times reported SIL posted a 66% fall in its third quarter (Q3) 2020 net profit due to reduction in revenue from the oil trading & bunkering services, due to Covid-19 related economic restrictions.
Related: Straits Inter Logistics sees 66% decline in net profit; slight recovery in bunker business
Related: Straits Inter Logistics subsidiary SMF Eden acquires “M.T. MO Satu” bunker tanker for USD 4.5 million
Related: Straits Inter Logistics sees 67.8% fall in Q2 2020 profit due to Covid-19 related impact
Related: Straits Inter Logistics subsidiary Beluga Asia acquires bunker tanker to increase service availability
Related: Straits Inter Logistics IMO 2020 strategies contribute 141.2% jump in revenue for Q1
Photo credit: Straits Inter Logistics Berhad
Published: 12 January, 2021
Offers its refineries incentive of 150 yuan ($23.35) per tonne of VLSFO to encourage production due to domestic diesel oversupply leaving local refineries idle.
Database includes 3,000 datapoints of global bunker supply options to discover which alternative fuels are available and where in the run up towards IMO 2030.
Total bunker sales at Panama was 402,313 mt in April, compared to sales of 415,222 mt during the similar period in 2020, according to Panama Maritime Authority data.
Lim family owns 41% of Universal Terminal through Universal Group Holdings, and other stakeholders include PetroChina International and MAIF Investments.
The 4,600 dwt tanker is built in 2010 and has a mixed fuel oil and gasoil capacity of 4,300 cubic metres.
As of 1 December 2018 the company will be fully operational in Jamaican ports, off Jamaica and Trinidad.
‘The acquisition of PGI Industries will enhance VPS’ preventative maintenance services offered to the power sector, increasing protection and sustainability of the asset,’ says Malcolm Cooper, CEO, VPS.
A foreign vessel was involved in an alleged unauthorised STS incident with bunker tanker Pearl Melody on 5 June, Director and General Manager of Consort Bunkers tells Manifold Times.
There are few critical questions needed to be answered by the industry, finds authors of the Nanyang Technological University funded study Bio-LNG – Its Role in Shipping Decarbonisation.
‘Coming here for me is a great opportunity to supervise and drive future developments which could shape our new operations within the Asian region,’ Alex Lyra tells Singapore bunkering publication Manifold Times.
UOB has started admiralty proceedings against 40 of Maersk Tankers’ ships for alleged misdelivery of cargo; informs it may take action against the vessels – unless security is provided.
Singfar embarks on plans to put it in good stride to support Singapore and global road to maritime decarbonisation by 2030/2050, shares Pai Hong Yao, Managing Director of Singfar.
