Boustead to acquire 80% stake in PFCE

PETALING JAYA: Boustead Holdings Bhd plans to acquire 8 million ordinary shares of RM1.00 each in PFC Engineering Sdn Bhd (PFCE) representing 80% of the issued and paid-up share capital of PFCE for RM20 million.

The remaining 20% equity interest in PFCE will continue to be held by PFCE group executive chairman Datuk Abu Talib Mohamed.

In a filing with Bursa Malaysia, Boustead said the acquisition will be funded by the internally generated funds of the company and its subsidiaries.

PFCE and its subsidiaries are an integrated engineering and maintenance services provider for the oil and gas industry, principally involved in the provision of project engineering services specialising in engineering, procurement, construction and commissioning services, facilities maintenance services and trading of oil and gas industry-related mechanical parts, equipment, tools and materials, for both onshore and offshore facilities.

It said the acquisition forms part of Boustead's strategy to continue exploring growth opportunities with a view to realising and driving our potential and to add value to the group's diverse stable of businesses.

Boustead said it will allow the group to expand its investment in the oil and gas (O&G) sector which is in-line with its strategic plan to further expand into this sector.

It said PFCE will provide synergy to the group's current capabilities in the O&G sector via PFCE's pool of talent, know-how and existing customer and supplier network.