WZSATU (7245) : WZ to buy O&G services firm for RM79mil
KUALA LUMPUR (Nov 6): WZ Satu Bhd signed a heads of agreement (HOA) to buy a 100% interest in oil and gas (O&G) support services provider UBF Maintenance Sdn Bhd for RM79 million under a cash and share deal.
In a filing with Bursa Malaysia today, WZ said it had entered into the HOA with vendors Khairul Anuar Mohd Nor, Datuk Leom Joo Deck, Cheong Cheng Kee and Wong Ka Tiang.
"The purpose of the HOA is to finalise the terms and conditions of the proposed acquisition and for the company and the vendors to negotiate with each other exclusively concerning the proposed acquisition," said WZ.
The HOA is expected to lead to a share sale agreement between the buyer and sellers.
It was earlier reported that the steel products manufacfurer WZ had been planning to diversify into the O&G sector.
According to WZ's statement today, the company will pay cash amounting to RM39.5 million
to the vendors for the UBF acquisition. The balance of the purchase price will be financed via issuance of 17.47 million new shares in WZ to the vendors.
WZ will issue the new shares at RM2.26 each. The new shares will constitute 7% of WZ's expanded share base.
The company has an existing issued base of 238.6 million shares.
WZ said it would receive a profit guarantee from the vendors under the acquisition,
The vendors will guarantee an aggregate audited net profit of not less than RM34.5 million during the period commencing from September 1, 2015 to August 31, 2018, according to WZ.
At 3.23pm WZ shares fell 14 sen or 6% to RM2.14 for a market capitalisation of RM511 million.
http://www.theedgemarkets.com
KUALA LUMPUR (Nov 6): WZ Satu Bhd signed a heads of agreement (HOA) to buy a 100% interest in oil and gas (O&G) support services provider UBF Maintenance Sdn Bhd for RM79 million under a cash and share deal.
In a filing with Bursa Malaysia today, WZ said it had entered into the HOA with vendors Khairul Anuar Mohd Nor, Datuk Leom Joo Deck, Cheong Cheng Kee and Wong Ka Tiang.
"The purpose of the HOA is to finalise the terms and conditions of the proposed acquisition and for the company and the vendors to negotiate with each other exclusively concerning the proposed acquisition," said WZ.
The HOA is expected to lead to a share sale agreement between the buyer and sellers.
It was earlier reported that the steel products manufacfurer WZ had been planning to diversify into the O&G sector.
According to WZ's statement today, the company will pay cash amounting to RM39.5 million
to the vendors for the UBF acquisition. The balance of the purchase price will be financed via issuance of 17.47 million new shares in WZ to the vendors.
WZ will issue the new shares at RM2.26 each. The new shares will constitute 7% of WZ's expanded share base.
The company has an existing issued base of 238.6 million shares.
WZ said it would receive a profit guarantee from the vendors under the acquisition,
The vendors will guarantee an aggregate audited net profit of not less than RM34.5 million during the period commencing from September 1, 2015 to August 31, 2018, according to WZ.
At 3.23pm WZ shares fell 14 sen or 6% to RM2.14 for a market capitalisation of RM511 million.
http://www.theedgemarkets.com
