TANJUNG Offshore Bhd says talks with several parties, including a unit of oil and gas (O&G) giant Bourbon SA, for a reverse takeover (RTO) of the company is still on-going.
“We have initiated the potential business acquisition and are still talking. There is no concrete result yet,” said its executive director Muhammad Sabri Ab Ghani.
It was reported yesterday that the RTO is being opposed by a group of minority shareholders who want the option of being able to sell their shares to the new owners.
There could be a possibility of the RTO hitting a snag as it needs the nod from Ekuiti Nasional Bhd (Ekuinas).
Tanjung Offshore had entered into a non-compete clause with Ekuinas in 2012 when the latter bought its marine vessel services arm Tanjung Kapal Services Sdn Bhd (TKS), for RM220 million.
A three-year restriction was imposed whereby Tanjung Offshore is not allowed to be involved in any business similar to TKS for at least another year.
The RTO, meanwhile, would see Tanjung Offshore getting back into the very same business as TKS.
According to Muhammad Sabri, Tanjung Offshore has sent a request to Ekuinas for a waiver of the clause.
He said the matter (RTO) will not be deliberated at the company’s extraordinary general meeting (EGM) on Friday.
“We are not going to talk about the RTO at the EGM,” he said, after inking a deal with UK-based recruitment firm Fircroft Group to supply skilled contract workers for the O&G sector here and abroad.
A 50:50 joint venture known as Fircroft Tanjung Sdn Bhd, will supply around 300 skilled contract workers in its first year of operation.
Muhammad Sabri expects the new venture to contribute up to 40 per cent to Tanjung Offshore’s revenue from 2017.
“We have a licence with Petroleum Nasional Bhd and hopefully, we can support all their projects,” he said.
Fircroft chief executive officer Johnathan Johnson said the supply of skilled contract workers for the O&G sector is a lucrative business as the industry is growing five per cent a year.
“It’s lucrative but not a high margin business,” he said.