Deleum acquires 70% stake in Indonesian machinery firm for RM31mil

KUALA LUMPUR: Deleum Bhd has expanded its footprint in the power and machinery business in Indonesia via the acquisition of 70% equity interest in PT OSA Industries Indonesia (OSAII) from OSA Industries Pte Ltd for US$7mil (RM31.02mil).

In a filing with Bursa Malaysia, the group said OSAII's primary business is the repair of machinery for special purposes and wholesale trade of machinery, equipment and other equipment.

It said OSAII's business runs parallel to that of its indirect subsidiary Penaga Dresser Sdn Bhd, thus presenting the opportunity to leverage knowledge, competencies and capabilities across both entities, expand the availability of resources and tap into economies of scale.

"This strategy is expected to create synergies, fortifying the company’s financials and in turn its shareholders’ value.

"The proposed acquisition is with the intent that the synergies expected to be generated between OSAII and Deleum Services Sdn Bhd will transform the enlarged Deleum group into a key contender for projects in Indonesia," it added.