In a move to fortify its presence in the Indonesian market, Deleum Bhd, a leading player in the oil and gas services sector, has initiated steps towards acquiring a significant 70% stake in PT OSA Industries Indonesia (OSAII).
The company formalised this intent by signing a heads of agreement (HOA) with multiple entities, including OSA Industries Pte Ltd.
Under the HOA, Deleum is set to embark on a six-month due diligence exercise, working closely with five key parties, namely OSA Industries Pte Ltd, PT OSA Industries Indonesia, PT OSA Megah Indonesia, and individuals Ong Siow Aik, Erik Aristino, and Fenty Herlinda. The collaboration aims to pave the way for comprehensive due diligence on OSAII and PT OSA Megah and subsequently finalise the definitive agreements for the proposed acquisition.
The proposed acquisition, valued at US$7.0 million, representing 70% of the total valuation of US$10 million, is anticipated to be a pivotal move for Deleum's Power and Machinery (P&M) business in Indonesia.
Deleum Services Sdn Bhd, a subsidiary of Deleum, is slated to acquire the majority of OSAII's issued share capital for US$7 million, representing 70% of the total valuation of US$10 million, subject to the successful outcome of the due diligence and the finalisation of definitive agreements.
OSAII, headquarters located in West Java, specialises in the repair, reconditioning, and testing of valves.
Deleum Rao Abdullah, group CEO, Rao Abdullah, noted the strategic importance of growing the company's footprint in Indonesia, citing the immense potential for business growth in the market.
The anticipated completion of the proposed acquisition is expected to unfold in the coming months.