Tanjung Offshore buys 51% stake in Wenmax

PETALING JAYA: Tanjung Offshore Berhad is acquiring a 51% stake in industrial equipment, machinery, spare parts and lubricants oil supplier Wenmax Sdn Bhd for RM8 million.

In a filing with the stock exchange, the oil and gas services provider said its wholly owned subsidiary Gas Generators (Malaysia) Sdn. Bhd had entered into a share sale agreement with Megaxus Resources Sdn. Bhd for the acquisition.

Wenmax is a licensed Petroliam Nasional Bhd (Petronas) vendor which allows it to supply its products to Petronas group of companies for its oil and gas projects.

Wenmax reported an audited revenue and net profit of about RM27.69 million and RM1.52 million respectively, for the financial year ended March 31, 2016.

The acquisition sum will be funded through internally generated funds.

Tanjung Offshore said the acquisition will enable it to further expand its business within the upstream oil and gas industry.

It is also expected to provide the group with the opportunity to improve its financial position.