(This article has been corrected to state that Perisai Petroleum Teknologi Bhd was delisted from the Main Market of Bursa Malaysia, and not the ACE Market as previously reported. The error is regretted.)

KUALA LUMPUR (July 6): Icon Offshore Bhd has announced that it is currently negotiating with Perisai Petroleum Teknologi Bhd to acquire the latter's subsidiary, which owns and operates a jack-up rig known as Perisai Pacific 101 (PP 101).

It was responding to a newspaper report saying that Icon Offshore would be acquiring the subsidiary for US$40 million (RM173 million), a fraction of the US$200 million Perisai paid in 2014.

"The company wishes to clarify that it is in negotiations and discussions with Perisai and its subsidiaries in relation to the proposed acquisition by the company and/or its subsidiary of the rig and equity stakes in the related drilling business from the Perisai Group with a view towards finalising the terms and conditions of the proposal," Icon Offshore said in a filing with Bursa Malaysia.

"Once the terms and conditions have been finalised and the definitive agreements have been signed, the details of the proposal will be released and the necessary announcement will be made on a timely basis as required by the Main Market Listing Requirements of Bursa Malaysia Securities Bhd," it added.

According to the report, the acquisition of PP 101 is free from debt and will come with a Petroliam Nasional Bhd licence and a working team to operate the rig.

Icon Offshore closed half a sen or 4.17% higher at 12.5 sen, valuing the company at RM333.05 million.

Some 92.18 million shares were traded, more than three times higher than the counter's 200-day average trading volume of 25.48 million shares.

Meanwhile, Perisai Petroleum was delisted from the Main Market of Bursa Malaysia on Jan 22, after Bursa Malaysia rejected the Practice Note 17 (PN17) listed group's appeal for an extension until June 30 to submit a new regularisation plan.

The company was classified as a PN17 company on Oct 12, 2016 after it defaulted on payments of the principal and interests for S$125 million multi-currency medium term notes.