<article>Malaysian offshore drilling services company <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=umw">UMW Oil &amp; Gas Corp Bhd (UMW-OG) </a>said it would buy Icon Offshore Berhad in a deal that values theoffshore support vessel provider at 588.6 million ringgit ($132 million).</article>

Malaysian offshore drilling services company <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=umw">UMW Oil &amp; Gas Corp Bhd (UMW-OG) </a>said it would buy Icon Offshore Berhad in a deal that values theoffshore support vessel provider at 588.6 million ringgit ($132 million).
UMW-OG will first acquire government-linked private equity firm <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=ekuinas">Ekuiti Nasional Berhad&#8217;s (Ekuinas)</a> indirect stake of 42.3 percent in Icon for new UMW-OG shares, it said in a statement on Thursday.
It then plans to take over the remaining shares of Icon for 50 sen per share using either cash or new UMW-OG shares at 80 sen per share.
UMW-OG also plans to buy Ekuinas&#8217; 95.5 percent interest in Orkim Sdn Bhd, an operator of clean petroleum product transportation vessels which it values at 495 million ringgit.
&#8220;This exercise aims to create a major integrated offshore service provider with diversified earnings through exposure in the upstream and downstream segment of the oil &amp; gas industry,&#8221; said Rohaizad Darus, UMW-OG&#8217;s president.
UMW-OG said it will commence a recapitalisation exercise via a rights issue of about 1.8 billion ringgit, to be supported by its major shareholders, once it completes its acquisitions.
Following the rights issue, Ekuinas will hold 23.1 percent of UMW-OG, while the stake of another government-linked fund, Permodalan Nasional Berhad, will rise to 39.7 percent from 13 percent.
The Malaysian oil &amp; gas industry has taken a hit from the slump in crude oil prices. A cost cutting drive by state oil firm Petroliam Nasional Bhd (Petronas) of up to $12 billion over four years added to the problems.
Last year, analysts had expressed concern about UMW-OG&#8217;s high gearing levels. The company has since restructured a large portion of its short-term debt into long-term debt and has also received a 308 million ringgit cash injection from its parent UMW Holdings.
Separately, UMW Holdings &#8211; which owns a near 56 percent stake in UMW-OG &#8211; said it would exit the oil and gas business by distributing UMW-OG shares to shareholders and selling its other energy holdings.
Maybank IB is the advisor for UMW Holdings and UMW-OG while <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=paribas">BNP Paribas</a> advised Ekuinas on the deal.
Also read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/my-icon-offshore-umw-og-may-merge-trading-in-shares-suspended-63100/">MY: Icon Offshore, UMW O&amp;G may merge, trading in shares suspended</a>
Reuters

Malaysian drilling services firm UMW-OG to buy Icon Offshore

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Malaysian drilling services firm UMW-OG to buy Icon Offshore

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