Deleum Berhad said it intends to fortify its Power and Machinery business in Indonesia, after it signed a Heads of Agreement to undertake a due diligence exercise on an acquisition target in Indonesia.
The group entered the HOA with five parties to collaborate over a six-month period in facilitating its due diligence on OSAII as well as to negotiate and finalise the definitive agreements for the proposed acquisition.
Through the Group’s subsidiary, Deleum Services Sdn Bhd will acquire 70% of the issued share capital of OSAII held by Ong Siow Aik and OSA Industries for a consideration of USD7.0 million (equivalent to RM33.1 million), representing 70% of the total valuation of USD10.0 million, subject to satisfactory outcome of the due diligence and finalisation of the definitive agreements.
OSAII, established in 1994 in Indonesia, specialises in the repairing, reconditioning and testing of valves, offering expert solutions to ensure optimal functionality. With a focus on quality and reliability, it also provides a diverse inventory of valves and supplies, catering to various industry needs. With its headquarters located in West Java, Indonesia, OSAII has built a reputable presence in the region.
Rao Abdullah, Group Chief Executive Officer of Deleum Berhad said: “Growing our presence in Indonesia is our strategic goal, given the enormous potential for our business growth in this market. This HOA represents the critical first step towards realising our mission. We are committed to using this cooperation as a springboard for our larger goal, capitalising on the numerous opportunities that Indonesian market offers us. As we proceed with due diligence and negotiation, we remain focused on delivering sustainable outcomes that align with our vision of being a leading player in the region.”
