KUALA LUMPUR: Deleum Bhd’s (Deleum) wholly-owned subsidiary, Deleum Services Sdn Bhd, today has signed a share purchase agreement to acquire a 70 percent stake in PT OSA Industries Indonesia Pte Ltd (PT OSA) for US$7 million (RM31.3 million). This follows the signing of the heads of agreement in March this year between the two oil and gas services companies.
According to BERNAMA News Agency, Deleum group chief executive officer Rao Abdullah stated that the acquisition unlocked new opportunities for the combined entity. He emphasized that the expanded team and established presence across the two countries present opportunities to tap into the dynamic valves market in Southeast Asia and extend coverage beyond existing product lines. Abdullah noted that ongoing and planned investments in oil and gas infrastructure, along with increased energy demands from accelerating economies, favor the prospects of the valve sector in the region.
As part of the agreement, PT OSA will provide a profit guarantee of US$2.7 mil
lion (RM12.1 million) cumulatively across the financial years ending 31 December 2024 and 2025. PT OSA director Ong Siow Aik expressed confidence in meeting the profit guarantees over the two years. He explained that the decision to sell the company’s majority share was driven by a desire for PT OSA to reach beyond its current state. Ong highlighted the importance of finding a partner with the drive and expertise to take the company further.
Deleum’s purchase consideration of US$7 million will be fulfilled via internally generated funds and bank borrowings. The acquisition is expected to be completed within the first half of 2025, subject to unforeseen circumstances and the satisfaction of identified conditions precedent. In a Bursa Malaysia filing, Deleum stated that PT OSA is the sole channel partner for Baker Hughes’ valves in Indonesia. The acquisition is expected to enhance Deleum’s technical expertise and capabilities in the valve management segment and provide opportunities in the Southeast Asian valv
es market.