Straits Energy Resources Bhd (Straits Energy) entered into a shares sales and purchase agreement with TMD Energy Limited (TMDel) for the proposed transfer of 1 million ordinary shares in Straits Marine Fuels & Energy Sdn Bhd (SMF) for RM11.1 million (equivalent to USD2.38 million).
In a Bursa filing today, UOB Kay Hian Securities Sdn Bhd (UOBKH), on behalf of the Straits Energy, said that the purchase 1 million ordinary shares represents 100% of the equity interest in SMF, is to be satisfied entirely via cash or the issuance of new TMDel Shares or a combination of both.
For the proposed internal restructuring exercise, Straits Energy and TMDel have mutually agreed to apply the currency exchange rate of USD1 equivalent to 4.6611.
As at 12 December 2023, both TMDel and SMF are wholly-owned direct subsidiaries of the Straits Energy.
“Upon completion of the proposed internal restructuring, SMF will become a wholly-owned direct subsidiary of TMDel, which in turn is a wholly-owned subsidiary of Straits Energy,” it said.
It said that the rationale of the proposed internal restructuring is to establish a leaner corporate structure with separately identifiable business streams to better reflect the group’s diverse operations.
“(Besides that, the exercise is) to achieve ease and flexibility in the expansion of new and streamlining of business segments and to unlock the value of TMDel’s investment in its subsidiaries and associate companies and facilitate any future spin-off of its operations,” it added.
