KUALA LUMPUR (May 7): Shares in Straits Inter Logistics Bhd rose as much as 4.08% in active trade this morning after the group signed an agreement with an upstream oil and gas (O&G) company, Elsa Energy Sdn Bhd, to explore potential acquisition opportunities.
At 9.58am, Straits Inter Logistics shares were up 4.08% or one sen at 25.5 sen, raising its market capitalisation to RM165.92 million. The counter was active with some 3.93 million shares changing hands.
Yesterday, Straits Inter Logistics said it had entered into a non-binding heads of agreement (HoA) with Elsa Energy.
In terms of the rationale of signing the HoA, the group said it allows for the two to explore potential business collaboration opportunities, particularly as Elsa Energy is mainly engaged in upstream O&G segment and Straits Inter Logistics is a provider of oil bunkering services and oil product trading.
The group added that the potential business cooperation between it and Elsa Energy could result in joint venture or the acquisition of an equity stake between the two.
In the case of a share sale agreement (SSA) materialising, UOB Kay Hian Securities (M) Sdn Bhd will be appointed to help undertake the SSA between Elsa Energy and Straits Inter Logistics.