This article first appeared in The Edge Financial Daily, on May 5, 2016.

KUALA LUMPUR: Sumatec Resources Bhd, controlled by businessman Tan Sri Halim Saad, has again found a potential buyer — R&A Telecommunication Group Bhd — for its 49% stake in Semua Shipping Sdn Bhd.

In a filing with Bursa Malaysia yesterday, loss-making R&A announced that it entered into a non-binding term sheet with Semua International Sdn Bhd to take over its wholly-owned unit Semua Shipping as part of its regularisation plan.

Under the proposed deal, Semua International will transfer all its shares in Semua Shipping to a special purpose vehicle (SPV) to be collectively held by its existing shareholders, namely Sumatec and Ebony Ritz Sdn Bhd, both holding a 49% stake each, and Singapore-listed Hoe Leong Corp Ltd (2%). Ebony Ritz is 80%-owned by Hoe Leong and 20%-owned by Auspicious Journey Sdn Bhd.

R&A shall then enter into a share purchase agreement to purchase the SPV for RM150 million. The sum will be settled by issue of new R&A shares at 10 sen each. R&A’s share price closed at one sen yesterday.

In conjunction with the proposed acquisition, R&A said it will seek an extension of four months until Sept 4 for the company to submit a regularisation plan to Bursa.

Semua Shipping currently owns six product tankers with a capacity of 8,000 tonnes each. All these vessels currently have long-term charters with Shell Malaysia, said R&A.

Meanwhile, R&A said the proposed acquisition is subject to the satisfaction of certain conditions, including a due diligence exercise on Semua Shipping, as well as the finalisation of a binding definitive agreement between the parties.

This is not Sumatec’s first attempt to dispose of Semua Shipping. Asia Bioenergy Technologies Bhd last year entered into a heads of agreement to buy out Semua Shipping and Semado Maritime Sdn Bhd from Sumatec and other stakeholders for RM168 million. However, the deal fell through after the heads of agreement entered lapsed in June last year.

R&A said it is in the midst of finalising the appointment of a principal adviser for the proposed acquisition.

In May last year, R&A triggered the Guidance Note 3 of the ACE Market listing requirements of Bursa when its auditors expressed a disclaimer opinion in the group’s audited financial statements for the financial year ended Dec 31, 2014, which was announced on April 30, 2015.