Singapore-listed oil and gas exploration and production firm Mirach Energy announced that its wholly-owned subsidiary, CPL (HK) Limited (CPHL), has expressed interest to potentially acquire 70 per cent stake in Malaysian firm RCL Kelstar Sdn Bhd.
In a disclosure to the Singapore Exchange on Tuesday, Mirach said the acquisition will allow CPHL and RCL Kelstar to jointly develop a multi-storey project in Malaysia, in collaboration with the Kelantan State Economic Development Corporation.
CPHL will sign a memorandum of understanding with RCL Kelstar in line with the planned acquisition, with the Mirach subsidiary furnishing MYR2 million ($507,000) as a refundable deposit. If the proposed investment materializes, the aggregate investment value will be MYR21 million ($5.32 million).
“The company is entering into this project with the intention to further strengthen its financial performance. The proposed investment is in line with the company’s strategy to return to profitability,” Mirach said in the disclosure.
Last year, Mirach announced that it intends to diversify its core business into property and construction as part of its strategy to return to profitability. It currently is involved in two low-cost housing projects in Malaysia.
RCL is a company that specializes in the business of timber and logging, cultivation, agriculture and plantation management.
CPHL will proceed with the due diligence exercise to determine the feasibility of the project upon execution of the MoU while RCL shall obtain and secure the approved plans for the projects and the joint venture agreement with the relevant authorities within three months from the date of the memorandum.
Mirach said it intends to seek approval from its shareholders in a general meeting that will be convened soon.