PETALING JAYA: Cookware manufacturer Ni Hsin Resources Bhd will invest RM10 million in Satumarin Sdn Bhd for its business expansion into the marine and oil & gas sectors.
Ni Hsin had agreed to acquire a 49% stake in Satumarin for RM735,000 cash. Upon the successful transfer of the sale shares to Ni Hsin, Ni Hsin would subscribe for up to 9.27 million redeemable preference shares for RM9.27 million cash in Satumarin within a period of five years.
Satumarin is in the business of providing professional offshore marine services and logistics support, project management and marine technical consultancy services in the oil & gas industry. The bumiputra company holds the license to supply product/service to exploration and oil/gas companies in Malaysia issued by Petronas.
Ni Hsin group chairman Sofiyan Yahya said this venture opens up new opportunities for Ni Hsin to expand into the marine and oil & gas sectors, plus the widened market opportunities in Malaysia, the Asean region and beyond.
“Ni Hsin is already familiar with the global market, and hence will further enhance Satumarin’s global aspirations. Satumarin is also evolving and expanding into new specialised services as a result of their extensive experience and expertise providing a range of marine services for the marine and oil & gas sectors.
“With this new partnership with Ni Hsin, together we can ensure the success of Satumarin’s goal to be the leading marine specialist player in the region,” he said in a statement.
Satumarin managing director Captain Mohd Zailani Abdul Razak with this investment, Satumarin will have a more solid base to further expand its market share in its existing services and venture into new market sectors, such as the Marine Warranty Survey.
“Marine Warranty Survey is an essential service to reduce the risk of loss or damage in high value marine construction and transportation projects, and we intend to establish, manage and operate a new arm for this with 100% local manpower expertise.”
Ni Hsin manufactures premium stainless steel multi-ply cookware in Asia. It also designs and manufactures stainless steel convex mirrors and stainless steel household water filtration systems.
At the noon break, its share price was down 2.7% to 18 sen on 3.76 million shares done.
