Straits Marine Fuels & Energy Sdn Bhd (SMF), the new subsidiary of Malaysia-listed bunkering firm Straits Inter Logistics (Straits), is expecting a partner to join the company as part of supporting expansion plans.
In a Proposed Divestment, Directors of Straits on Friday (15 March) agreed to divest a 43% of SMF’s shares to an “identified parties” to include the group as partners.
“The Board is of the view that the business of SMF requires bigger platform, specialised skills and increased management focus to grow effectively, maximise the potential value and bring synergistic effect to its existing assets and operations,” it states.
“The Proposed Divestment is not only as a divestment of assets but also mainly a formation of a strategic partnership with the Parties and is essential for and complements the continuous growth of Straits.
“The Proposed Divestment and additional subscription of new shares in SMF would enable the Group to re-strategise its financial and capital requirements which includes vessel acquisition and operational activities.
“Straits will be entering into a Shareholders’ Agreement with the identified Parties in due course and will announce to Bursa accordingly.”
Earlier in 2018, Straits completed the acquisition of 55% equity interest in Tumpuan Megah Development Sdn Bhd (TMD), acquiring a full spectrum of licenses to carry out its oil bunkering services in 14 operating ports in Malaysia.
Strait’s acquisition of 38% equity interest in Banle during February 2019 has meanwhile enhanced its business opportunities to provide oil bunkering services to Banle’s existing customers who intend to dock at Malaysian ports.
“The acquisition of 38% Banle is also in line with Straits’ overall strategy i.e widening its geographical footprint to overseas market namely Hong Kong, China and Taiwan market where Straits does not have presence at this juncture,” it adds.
Straits posted a 61% increase in net profit during its 2018 financial year on the back of several expansion developments.
Related: Straits Marine Fuels & Energy to start bunkering ops at Johor
Related: Bursa Malaysia approves Straits Inter Logistics acquisition of Tumpuan Megah
Related: Straits Inter Logistics mulls $3.6 million acquisition of Banle Energy
Related: Straits Inter Logistics ends 2018 with 61% profit increase
Photo credit: Straits Inter Logistics
Published: 19 March, 2019
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