Malaysian offshore drilling services firm UMW Oil & Gas will buy Icon Offshore Berhad in a deal worth $132million.
The UMW-OG will first acquire government-linked private equity firm Ekuiti Nasional Berhad’s indirect stake of 42.3% in Icon for new UMW shares.
UMW-OG also plans to buy Ekuinas’ 95.5% interest in Orkim Sdn Bhd.
Rohaizad Darus, UMW-OG’s president, said:”This exercise aims to create a major integrated offshore service provider with diversified earnings through exposure in the upstream and downstream segment of the oil & gas industry.”
The Malaysian oil and gas industry has taken a hit from the slump in crude oil prices.
A cost cutting drive by state oil firm Petronas of up to $12 billion over four years added to the challenges.