KENCANA Petroleum Bhd (5122), through its wholly-owned subsidiary Kencana Petroleum Ventures Sdn Bhd (KPV), is acquiring equity in Mermaid Kencana Rig 1 Pte Ltd (MKR1), Kencana Mermaid Drilling Sdn Bhd (KMD) and Mermaid Kencana Rigs (Labuan) Pte Ltd (MKR Labuan) from Mermaid Drilling (Singapore) Pte Ltd, together with intercompany loans and debts, for US$66.6 million (RM213.12 million).
The equity acquisition - 75 per cent in MKR1, 40 per cent in KMD and 45 per cent in MKR Labuan - amount to US$43.65 million.
KPV will also pay Mermaid Drilling Singapore US$22.95 million (RM73.44 million) to settle intercompany loans and debts in the three companies.
Kencana said the acquisitions, which will make the company the only Malaysian group with a wholly owned offshore drilling subsidiary, are in line with its plans to expand its recurring income and secure businesses with higher margins.
The exercise is expected to be completed in the first quarter of the group's financial year ending July 31 2011.
-- by Business Times
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