BUMI Armada Berhad (Bumi Armada) said that it has signed a non-binding memorandum of understanding (MoU) with MISC Bhd to explore a potential merger with MISC’s offshore business.
The proposed merger, structured as an all-shares transaction, is intended to create “a Malaysian-based sector-focused entity which leverages the combined talent pool, project development and engineering capability, and know-how of both MISC’s offshore business and Bumi Armada.”
It told the bourse in a filing today that the merger aims to harness the operational synergies and combined expertise of both companies, positioning them as “among 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.”
The MoU specifies that both companies will conduct further assessments and due diligence before potentially advancing to the negotiation of a definitive agreement.
Effective for a period of nine months, the MoU allows for exclusive cooperation and contains confidentiality terms, but it is “not intended to have a legal and binding effect save for certain clauses relating to, among others, exclusivity and confidentiality.”
In compliance with Bursa Malaysia’s Main Market Listing Requirements, Bumi Armada has assured investors that any significant updates regarding the merger process will be shared if the parties agree on terms and finalise a binding agreement.
The announcement concludes with a reminder for stakeholders: “Shareholders and potential investors are advised to exercise caution when dealing in the securities of Bumi Armada.”