KUALA LUMPUR (Jan 5): Practice Note 17 (PN17) company Scomi Group Bhd has announced its intent to buy an additional 60% equity interest in its power generation solutions joint-venture (JV) firm Hartamas Megah Sdn Bhd, raising its stake in the company to 80%.
In a filing on Thursday (Jan 5), the oil and gas service provider said its wholly-owned subsidiary Scomi Capital Sdn Bhd (SCSB) entered into a heads of agreement (HOA) with its JV partner XAIR Generators Sdn Bhd towards acquiring the further 60% equity interest in Hartamas Megah.
“The objective of the HOA is to finalise the terms and conditions of the sale and purchase agreement (SPA) to be signed pursuant to the potential acquisition,” Scomi said, adding that the potential acquisition is intended to be undertaken as part of its proposed regularisation plan.
Scomi said Hartamas Megah is a JV company between SCSB and XAIR, set up for the purposes of marketing, selling, leasing and maintaining energy-saving gensets to various markets.
Currently, XAIR holds an 80% stake in the JV, while SCSB holds 20%. If the potential acquisition goes through, SCSB will increase its stake to 80%, while XAIR will have 20%.
The HOA provides an exclusivity period of three months to allow the pair to negotiate and enter into an SPA in relation to the potential acquisition.
“The duration of the exclusivity may be extended in writing by the parties,” Scomi noted.
Scomi fell into PN17 status in December 2019, after its shareholders’ equity spread slipped below 25% of its issued share capital and its equity dropped below RM40 million based on its financial results for the quarter ended June 30, 2019.
The company’s shares were suspended on April 20, 2022, after Bursa Securities rejected its request for a further extension of time to submit its regularisation plan. The counter last traded at half a sen on April 18, 2022.