KUALA LUMPUR: Bumi Armada Bhd has signed a non-binding memorandum of understanding (MoU) with MISC Bhd to explore the possibility of merging with the latter's offshore business through an all-share transaction.
In a filing with Bursa Malaysia today, Bumi Armada said the merged entity arising from the proposed merger would remain listed on Bursa Malaysia Securities Bhd.
It said the combined entity would be positioned as one of the leading floating production businesses globally with the scale, resources and financial capacity to compete in the growing and capital-intensive offshore floating production segment.
"Further, the proposed merger will establish a Malaysian-based sector-focused entity that leverages the combined talent pool, project development and engineering capability, and know-how of MISC's offshore business and Bumi Armada.
Bumi Armada said the MoU is effective for nine months from the date of signing unless extended or terminated earlier by mutual agreement.
It said a detailed announcement would be issued in line with Bursa Securities' Main Market Listing Requirements if the merger proceeds and terms are agreed upon.
"According to the MoU, both parties will work exclusively and in good faith towards the merger, and if both parties decide to proceed after further evaluation and due diligence, they may enter into negotiations on the definitive agreement(s)," it added.
-- BERNAMA
TAGS: Bumi Armada, MISC, MoU, merger, offshore sector