Puncak acquires remaining 60% interest in Global Offshore, KGL

KUALA LUMPUR: Puncak Niaga Holdings Bhd has acquired the remaining 60% equity interest in Global Offshore Malaysia Sdn Bhd and KGL Ltd respectively for RM110.68 million (US$35.4 million).

In an announcement to Bursa Malaysia yesterday, Puncak Niaga said it made the acquisition via its wholly-owned subsidiary Puncak Oil and Gas Sdn Bhd (POG) which had in May acquired a 40% interest in Global Offshore and KGL respectively for RM72.2 million (US$23.6 million). According to Puncak Niaga, the acquisition in May included the call option agreement between Global Asia Pacific Industries Sdn Bhd (GAPI) and POG to allow POG to acquire 49% equity interest in Global Offshore from GAPI (Global Offshore-GAPI call option).

“The call option agreement between Global International Vessels Ltd (GIVL) and POG to allow POG to acquire 11% equity interests in Global Offshore from GIVL (Global Offshore-GIVL call option”) and the call option agreement between GIVL and POG to allow POG to acquire 60% equity interest in KGL from GIVL (KGL-GIVL call option) (collectively known as ‘the Call Options’),” said the company. Puncak Niaga added it had on Sept 23 exercised the call options to acquire the remaining 60% equity interests in Global Offshore and KGL respectively.

With the exercise completed yesterday, Global Offshore and KGL are now wholly-owned subsidiaries of POG.

Global Offshore is involved in the business of construction and subsea services including pipeline construction, platform installation and removal, construction support, diving services, diverless intervention and marine support services while KGL is the registered and beneficial owner of the pipelay barge DLB 264.

Global Offshore also has been awarded by Petronas the integrated transportation and installation of offshore facilities for pipelay barge package A for Petronas Carigali Sdn Bhd and 10 other companies that have entered into a production sharing contract with Petronas.

Puncak Niaga had said in May that its acquisition of the two companies would provide a platform for it to enter the oil and gas industry.

Insiders, however, add that Puncak Niaga could be looking to participate in oil major Petronas’ marginal oil field development contracts.

At present Puncak’s core business lies in water treatment and distribution via wholly-owned Puncak Niaga (M) Sdn Bhd (PNSB) and 70% Syarikat Bekalan Air Selangor Sdn Bhd (Syabas).

Puncak’s stock ended trading yesterday at RM1.06, inching up four sen.