Ideal Jacobs in RTO move for O&G venture

by **Cals** Wed 18 Jun 2014, 02:53

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Tuesday, 17 June 2014 09:40

KUALA LUMPUR: Ideal Jacobs (M) Corp Bhd is poised to be an oil and gas (O&G) player following the signing of a heads of agreement 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 yesterday.
The RTO would see Ideal Jacobs or a special purpose vehicle 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’ 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 said.
Yesterday’s announcement confirmed 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.

This article first appeared in The Edge Financial Daily, on June 17, 2014.