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Dayang makes takeover offer for Perdana Petroleum

Dayang makes takeover offer for Perdana Petroleum
Amid some signs of consolidation in Malaysia's offshore oil and gas sector, Dayang Enterprise Holdings is trying to take over smallish offshore vessel player Perdana Petroleum.

Dayang, which specialises in hook-up, maintenance and commissioning and has recent Petronas contracts in hand, has launched a conditional mandatory takeover offer for all the shares it does not already own in Perdana for MYR66.6m ($17.6m) cash or MYR1.55 a share, it said in a statement.

Dayang said it was buying 42.96m shares of Perdana Petroleum, representing 5.74%, from Affin Hwang Investment Management.So far, from 15 May to 8 June, Dayang notified that it had acquired 22m Perdana shares, representing about 2.94% of its issued and paid-up capital as at 26 June and 12.78m five-year warrants representing approximately 41.71% of the total outstanding warrants in the open market at average daily prices ranging from MYR1.527 to MYR1.529 per share and MYR0.83 to MYR0.84 per warrant.

Dayang has been chartering vessels from Perdana for its contracts, so a takeover will be positive for its operating margins, currently one of the highest among the hook-up, commissioning and maintenance players.

For the financial year ended 31 December 2014, Perdana contributed MYR22m to Dayang’s bottomline, representing 12% of the latter’s earnings.

Dayang is confident that Perdana will continue to be its key growth driver due to strong performance from the latter’s long-term charters.