PDZ Holdings Bhd expects to complete its due diligence for the acquisition of oil and gas (O&G) assets in Indonesia in the next one month, which could result in an injection of a new shareholder in the container liner firm if the purchase is done through a share swap deal.
PDZ MD and Pelaburan Mara Bhd’s (PMB) CEO Nazim Rahman said PDZ is still weighing its option on the funding for the O&G assets, which include paying cash, a share swap or a combination of both.
PMB acquired a stake in PDZ in April and is currently the largest shareholder with a 30% equity in the shipping-related firm.
The decision will rest on the outcome of the due diligence as it will determine the pricing for the purchase based on the valuations determined by the due diligence.
In an interview with The Malaysian Reserve, Nazim said the assets involve upstream and downstream activities but did not reveal the identity of the assets owners.
He said apart from internally generated fund to finance PDZ’s future expansion, the shipping firm may also look at raising funds through a corporate exercise, which may include rights issue.
According to him, PDZ is looking to expand its vessels fleet as well as its logistic business. The firm is also planning to Indonesia.
“As for now we have five vessels operating, which three of them are wholly owned. However, we do plan on increasing the number of vessels in the near future,” added Nazim.
Besides venturing into offshore services, it was reported that PMB is also keen on leading PDZ into a number of other areas such as engineering, procurement, construction, installation and commissioning.
Nonetheless, PMB, the investment and management arm of Majlis Amanah Rakyat, will still be looking at other markets, provided that significant earnings could be generated for the company.
“Ultimately, the long-term plan is to create an integrated logistics businessfor the company,” said Nazim.
PDZ has been suffering losses for three out of the five financial years (FYs) since FY09 ended June 30. It posted a net loss of RM12.4 million for FY13.
PMB’s investment for the 233.9 million shares in PDZ cost RM42.1 million.
On other matters, PDZ told the local exchange that it not aware of any rumours or reports concerning the business affair of the company and any negotiations with any party that resulted in the recent rise in price and volume of the company’s shares.
PDZ’s stock closed at 24.5 sen yesterday, up 1.5 sen from the previous day’s closing price.