KUALA LUMPUR (Dec 17): Petra Energy Bhd, which is primarily in the provision of brown field services for the upstream oil and gas (O&G) industry, is disposing its entire 51% equity interest in Bumi Subsea Sdn Bhd for RM430,912.45, cash, to concentrate on its existing business.

The 51% stake in Bumi Subsea was initially acquired by PEB on Aug 27 last year for RM340,000. At the time, it said the acquisition would enable the group to "benefit from the underwater inspection, maintenance and repair segment of the oil and gas industry", in line with its strategy to expand its technical abilities in the upstream segment.

Yesterday, it told Bursa Malaysia that its wholly owned unit, PE Ventures Sdn Bhd, has entered into a share sale agreement (SSA) to dispose of its 312,245 shares to Bumi Subsea's existing shareholders. 

Bumi Subsea is involved in offshore engineering and construction works and services. However, Petra Energy noted that Bumi Subsea has yet to commence business operations and is not engaged in any contract.

Petra Energy said the proposed disposal will not result in any gain or loss, adding that the proceeds will be used to finance its working capital requirement within 12 months after it completes the disposal.

"The proposed disposal will enable the group to divest their investment and recover its [initial] cost of investment in Bumi Subsea.

"In addition, Bumi Subsea shall pay PE Ventures a success fee of 3% of the value of any contract awarded to Bumi Subsea pursuant to any bids, proposals or tenders submitted by Bumi Subsea prior to the completion of the disposal, as attached in the SSA," said Petra Energy.

Petra Energy aims to complete the disposal in the fourth quarter of 2014.

PEB fell 1 sen or 0.63% to close at RM1.59. Its market capitalisation stood at RM511.58 million.