Malaysia’s MISC BERHAD (MISC) has entered on Thursday into a non-binding memorandum of understanding (MOU) with Bumi Armada Berhad (BAB) to mutually explore a prospective share-based merger of the company’s offshore business and BAB.
“The proposed merger will establish 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 BAB,” MISC said in a stock exchange announcement on November 14.
MISC added that the merged entity, which is expected to remain listed on Bursa Malaysia Securities Berhad, will be 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 proposed merger “is at an early stage of evaluation and there is no certainty that the ongoing discussions between BAB and MISC will result in the entry into any binding agreement nor the completion of the proposed merger,” the company said, adding that the MOU is effective for a period of nine months.
To remind, MISC Group is a provider of international energy-related maritime solutions and services.
