Deleum targets growth via RM60mil deal

PETALING JAYA: Oil and gas services company Deleum Bhd’s proposal to buy regional assets will add more value and options to its operations in its offshore services solutions.

MIDF Research did not make any changes to its forecast projection for Deleum at this juncture, as the sale and purchase agreement (SPA) is still in early stages.

Additionally, the research house maintains its “buy” call on the stock with a target price of RM1.92 a share. Deleum announced that its indirect subsidiary Deleum Oilfield Solutions Thailand (DOST) had entered into a SPA to acquire oilfield services assets and business.

This includes slickline, hydraulic workover, and wellhead maintenance, from MPC Future Co, for about RM60mil.

The SPA is expected to be completed in the second half of 2025 and will be satisfied through a combination of cash payment and issuance of new shares in DOST, resulting in Deleum being 49.93% and MPC being a 48.34% shareholders of DOST post transaction.

It said the SPA is in line with the group’s forecasted growth trajectory, as the group had guided that it will consider acquiring similar businesses in the long term to widen its international footprint in the Asean region.