KUALA LUMPUR: Propel Global Bhd has proposed to buy an extra 39 per cent stake in Best Wide Engineering (M) Sdn Bhd (BWE) for RM6.19 million.
Propel Global said it had entered into a shares sale agreement for the acquisition of the stake in the engineering, procurement, construction and commissioning services firm, pursuant to a put and call option agreement signed with the vendors.
The acquisition will increase the company's ownership of BWE from 51 per cent to 90 per cent, further consolidating control over it.
Propel Global executive director and group chief executive officer Angeline Lee said the acquisition reflects the company's strong commitment to expanding its presence in the oil and gas (O&G) sector.
She added that acquiring the remaining stake in BWE allows the company to enhance its core business and fully leverage its growth potential.
"Propel Global remains focused on driving sustainable growth and delivering value to our stakeholders as we continue to strengthen our position in the industry," she said.
The company has also proposed a private placement of up to 10 per cent of its issued shares, which will allow it to raise up to RM8.25 million in gross proceeds.
She said the funds raised will be allocated towards business expansion plans, working capital for overheads, and estimated expenses related to the placement.
She noted that the private placement will provide additional financial flexibility to support the company's growth ambitions without incurring interest-bearing debt.
BWE has over two decades of experience in the oil and gas sector, specialising in engineering, procurement, construction and commissioning services.
Propel Global initially acquired a 51 per cent stake in BWE on Jan 6, 2023.
The company said the latest acquisition is expected to significantly boost the company's service offerings in the O&G sector, particularly in plant construction, equipment design, and process systems.
By increasing its stake in BWE, Propel Global aims to fully capitalise on future profit growth and expand its market presence in both onshore and offshore O&G operations.