Asia/Pacific News
Malaysian MGO Supplier Plans to Expand Through Acquisitions
Malaysian bunker player Damini Corporation Sdn Bhd (DMC) plans to grow by acquisition following an injection of private equity capital, national media reports.
DMC has not yet named the target companies but said they would dovetail with its current activities, which according to the report range from water treatment and engineering services to the supply of marine gasoil (MGO).
"Our new companies will still be in the oil and gas segment and utilities segment," said Group Managing Director, Borhanuddin Ramli.
"We have identified the companies and hope to finalise at least one by this year."
The move follows the completion of a deal between DMC and private equity firm CMS Opus Private Equity Sdn Bhd, which has taken a 30 percent stake in DMC.
It is understood that DMC is intending also to pursue a listing in the next two to three years.
"In terms of profit track record, we have already met the quantitative requirement," said Ramli.
"However, we would like to further strengthen the qualitative aspect of the requirement before we apply for a listing."
DMC reported turnover of RM130 million last year, with 70 percent coming from its water industry operations and remaining 30 percent being contributed by its activities in the oil and gas segment.
On Monday, Malaysia's Tumpuan Megah Development Sdn Bhd said it plans to list its shares on the Bursa Malaysia, formerly known as Kuala Lumpur Stock Exchange, in 2016.
