Shareholders of Tanjung, an oil and gas services support firm, yesterday gave their approval for Ekuinas to emerge as the second largest shareholder in the firm.
Ekuinas' chief executive officer Datuk Abdul Rahman Ahmad said its investment horizon as a strategic investor tends to be between three and five years.
"As our base target, in terms of rule of thumb, we like to double - whether it is revenue or bottom line - over the investment horizon," he said at a press conference yesterday after Tanjung's shareholder meeting.
Ekuinas is spending RM73.4 million to buy 26 million new Tanjung shares under a special share placement exercise, and 30.5 million existing shares from former executive director Abdullah Hashim and his affiliates, at RM1.30 each.
The deal is expected to be concluded in "the next one week or so", Abdul Rahman said.
Of the RM73.4 million, RM33.8 million will be injected into Tanjung as working capital as well as to repay borrowings.
It had borrowings of about RM587.3 million as at June 30 this year.
"We're in discussion with the management to see how best to aggressively grow earnings, either by way of asset expansion or by way of activity or geographical expansion," he said.
Managing director Omar Khalid said the company hopes to bid for more projects such as from Petroliam Nasional Bhd.
Tanjung currently has an order book of around RM800 million and is bidding for projects worth over RM1 billion, of which a quarter are overseas projects.
Omar said the company, which owns and operates 16 vessels, tends to have a success rate of around 30 per cent for its bids.
Omar remains the largest shareholder of the firm, with a 34 per cent stake.
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