Highlight Perdana Petroleum mulls over business direction amid Dayang MGO

by **Cals** Thu 21 May 2015, 22:39

Highlight
Perdana Petroleum mulls over business direction amid Dayang MGO

KUALA LUMPUR (May 21): Perdana Petroleum Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) is mulling over its business direction going forward as Dayang Enterprise Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) is raising its stake in the former, its associate company.
"We have to discuss first. It is difficult for me to comment now," said Perdana (fundamental: 1.3; valuation: 1.4) director Datuk James Ling at the group's annual general meeting today.
"If it is necessary to change, we will change. If the business is doing well, then I don't think there is a reason to change, isn't it?" he said.
Perdana currently provides offshore marine services for the upstream oil and gas industry.
Ling, who is also Dayang (fundamental: 2.7; valuation: 2.1) executive deputy chairman, said Dayang's mandatory general offer (MGO) of RM1.55 per share is a "fair price".
"I say it is a fair price. I hope shareholders will look at it positively," he said.
Last week, Dayang announced it had entered into a conditional share sale agreement with Affin Hwang Asset Management Bhd to acquire the latter's 5.74% stake or 42.96 million shares in Perdana, at RM1.55 per share or RM66.59 million in total.
The share purchase will subsequently be followed by an MGO.
According to the announcement, the proposed acquisition represents an opportunity for Dayang and its subsidiaries to pursue its expansion strategy and long-term objectives of evolving into a market leader for the provision of hook-up, construction and commissioning services within the oil and gas industry.
At midday break, Perdana was flat at RM1.53 with 619,300 shares done. Dayang fell 3 sen or 1.2% to RM2.52 with 38,400 shares changing hands.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)