KUALA LUMPUR (July 11): Engineering solutions provider Pasukhas Group Bhd said its wholly-owned subsidiary Pasukhas Energy Sdn Bhd has entered into a memorandum of understanding (MoU) with IR Hariyanto for the proposed acquisition of a 61% stake in PT Indomuda Satria Internusa.

Jakarta-based PT Indomuda provides engineering services for oil and gas, petrochemical and power plants, and also produces, trades and exports coal. The company also builds and operates coal fired and hydro power plants and provides onshore and offshore drilling services.

The purchase consideration for PT Indomuda shall be mutually agreed on by the parties and will be set forth in a share sale agreement, Pasukhas said in a Bursa Malaysia filing today.

Under the MoU, the parties agreed that a legal, technical and financial due diligence shall be performed on PT Indomuda.

"The proposed acquisition is intended to enhance and further strengthen Pasukhas's involvement in power investment business and to grant Pasukhas the opportunities to expand its power investment business in Indonesia," it said.

The company said the MoU is not expected to have any material impact on its earnings per share and gearing for the current financial year ending Dec 31, 2017.

Pasukhas closed unchanged at 18 sen, giving it a market capitalisation of RM137.97 million.