UMW Oil & Gas, Icon Offshore, Orkim merger aborted

PETALING JAYA: A planned merger between UMW Oil & Gas Corp Bhd (UMW-OG), Icon Offshore Bhd and Orkim Sdn Bhd has been called off due to significant capital requirements.
Ekuiti Nasional Bhd (Ekuinas), the largest shareholder of Icon Offshore and Orkim, said it arrived at the decision after considering the significant capital requirements of UMW-OG, which necessitates a far larger recapitalisation than initially envisaged.
"This, in turn, would have an adverse effect on the economics of the proposed transaction. In the meantime, we will support our investee companies, Icon and Orkim, in executing their strategies to grow their respective businesses in the pursuit of shareholder value creation.
"We would like to thank all the parties involved in the discussions for their time and effort, and we wish UMW-OG all the best in their recapitalisation exercise," Ekuinas CEO Syed Yasir Arafat Syed Abd Kadir said in a statement.