KUALA LUMPUR (Oct 14): Stainless steel cookware maker Ni Hsin Resources Bhd plans to invest RM10 million in Satumarin Sdn Bhd to expand into the marine and oil and gas (O&G) sectors.

The expansion announcement came after the group agreed to buy a 49% stake for RM735,000 in Satumarin, which is in the business of providing offshore marine services and logistics support, besides project management and marine technical consultancy services to the O&G industry.

Ni Hsin inked an agreement with Satumarin today to effect the deal. The bumiputera company, Ni Hsin said in a statement, also holds the licence to supply products and services to exploration and O&G companies in Malaysia issued by Petronas.

"Upon successful transfer of the sale shares to Ni Hsin, Ni Hsin would subscribe for up to 9.265 million redeemable preference shares for a total cash consideration of RM9.265 million in Satumarin within a period of five years following the sale completion date, from time to time and in such amount and tranches as mutually agreed between the company (Ni Hsin) and the investor, taking into consideration the working capital funding requirement of the company (Ni Hsin)," Ni Hsin said in a statement today.

"This venture opens up new opportunities for Ni Hsin to expand into the marine and O&G sectors, plus the widened market opportunities in Malaysia, the Asean region and beyond. Ni Hsin is already familiar with the global market, and hence will further enhance Satumarin's global aspirations," said Ni Hsin group chairman Sofiyan Yahya.

"Satumarin is also evolving and expanding into new specialised services as a result of their extensive experience and expertise providing a range of marine services for the marine and O&G sectors.

"With this new partnership with Ni Hsin, together we can ensure the success of Satumarin's goal to be the leading marine specialist player in the region," he added.

Satumarin managing director Captain Mohd Zailani Abdul Razak said: "With this investment, Satumarin will have a more solid base to further expand our market share in our existing services and venture into new market sectors, such as marine warranty survey."

Marine warranty survey is an essential service to reduce the risk of loss or damage in high value marine construction and transportation projects, Mohd Zailani said. "We intend to establish, manage and operate a new arm for this with 100% local manpower expertise," he added.

Ni Hsin shares closed 2 sen or 10.81% lower at 16.5 sen today, giving it a market value of RM56.34 million. In the past 52 weeks, the stock has ranged between 14 sen and 32 sen.