RAMUNIA back to rig business

RAMUNIA Holdings Bhd (7206)is returning to its old core business of making oil rigs, almost a year after it sold its major asset to Sime Darby Bhd for RM560 million.

It has made an offer to Oilfab Sdn Bhd, a 51 per cent unit of Oilcorp Bhd, to buy the Pulau Indah Integrated Fabrication Yard and assets in Klang, Selangor, for RM83.8 million.

Ramunia used to own the 680ha Teluk Ramunia fabrication yard in Johor.

Its new purchase will allow it to start operating a fabrication yard immediately, the group said in a statement to Bursa Malaysia.
Ramunia intends to bid for fabrication contracts for oil and gas projects under the Economic Transformation Programme (ETP).

It wants to continue its decade-long history of fabricating offshore structures for the oil and gas industry, the company said.

Ramunia expects to take over the fabrication yard, which is fully equipped and ready with infrastructure, from March 1 2011.

The company said it will pay RM3.8 million in cash for the acquisition. The rest will be settled with new Ramunia shares to Oilfab at an issue price of 51 sen each.

Oilfab is expected to place out half of the shares to unidentified investors at the same price.- by btimes.com.my