PDZ enters offshore oil and gas services business
Malaysia’s PDZ Holdings Bhd, an investment holding company, engaged in container liner business, is stepping into the offshore oil and gas business.
In a Bursa Malaysia filing issued Wednesday, May 14, the company said it planned to acquire a 20% share in Efogen Sdn Bhd.
Efogen is principally involved in the chartering of vessels for oil and gas offshore support services, providing geophysical services to the oil and gas industry, trading in related information technology software and hardware apparatus as well as providing consultancy and maintenance services in related fields.
PDZ said that the purchase will be made entirely in cash, which will be financed through internally-generated funds and bank borrowings. The value of the deal is estimated at 18 million Malaysian ringgit ($5.6 million).
The management of PDZ said the move was a first step towards PDZ’s plans to grow its present core business in the container liner, shipping and shipping management services business into providing offshore supply vessel services to the oil and gas industries.
PDZ further said that the proposed acquisition is expected to create new opportunities within the enlarged PDZ Group by providing access to the ESB’s oil and gas business segment. This will enable PDZ to tap into the contracts and businesses of ESB, whereby PDZ will then be able to offer its range of shipping and container liners for the support of ESB’s oil and gas off-shore support services. PDZ said that the acquisition would enable to company to compete more effectively within the oil and gas industry as well as the shipping and maritime industry in Malaysia in terms of cost and product range.