M&A Ideal Jacobs in reverse takeover move for O&G venture

by **Cals** Tue 17 Jun 2014, 01:18

M&A Ideal Jacobs in reverse takeover move for O&G venture

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Monday, 16 June 2014 16:50

KUALA LUMPUR (June 16): Ideal Jacobs (M) Corporation Bhd is poised to be an oil & gas player following the signing of a heads of agreement (HOA) with Cekap Technical Services Sdn Bhd and MECIP Global Engineers Sdn Bhd to facilitate the listing of the companies in a reverse takeover (RTO) exercise.

Both companies are currently operating in the O&G industry in the fields of project management and engineering consultancy services, Ideal Jacobs said in a statement.

According to the statement, the RTO would see Ideal Jacobs or a special purpose vehicle (SPV) acquire the entire issued and paid-up share capital of Cekap Technical Services and MECIP.

The acquisition would be satisfied by the issuance of new shares at an issue price of 25 sen per share, but Ideal jacobs did not specify the purchase consideration.

“The proposed RTO aims to provide existing shareholders of Ideal Jacobs with an opportunity to benefit from Cekap Technical Services’ and MECIP’s growth potential in the oil and gas industry,” it said.

“Ideal Jacobs’s shareholders are also expected to benefit from Cekap Technical Services’ and MECIP’s experience in the oil and gas sectors and their reliable cashflow from contracts,” it added.

Today's announcement confirms a report by theedgemalaysia.com last week, which quoted an industry source as saying Ideal Jacobs was eyeing an entry into the lucrative O&G sector.