KUALA LUMPUR (March 13): Avangaad Bhd (KL:AVANGAAD), fresh from having its cash-strapped status lifted, plans to buy marine consultancy company Bumi Jaya Shipcare Sdn Bhd (BJSSB) and two tugboats for RM49 million.

The company, formerly known as EA Technique (M) Bhd, saw its Practice Note 17 status lifted on Feb 20, 2025.

According to its bourse filing, the company has signed a preliminary agreement with four parties, which still needs final terms, due diligence checks, and an independent valuation before the proposed acquisitions can proceed.

The vendors of the deal are Johor Ship Care Sdn Bhd (JSCSB), Impresif Rezeki Sdn Bhd (IRSB), Ben Bakar Abdullah and K Sugumaran Kolanthai.

The agreement is conditional upon the vendors’ divestment of its 49% interest stevedoring company, Peninsular Mooring Sdn Bhd (PMSB), and securing a one-year extension for BJSSB's offshore services contract, among others.

Avangaad said the proposed acquisitions will strategically expand its vessels fleet and enhance its capability to deliver higher-value maritime services.

“With a focus on securing additional long-term contracts, the company aims to scale operations, strengthen service capabilities, and drive resilient growth to ensure long-term financial stability,” it said.

The company expects the acquisition to be completed by the third quarter this year.

Avangaad reported a more than six-fold jump in net profit of RM154.3 million for the financial year ended Dec 31, 2024 thanks to write-backs from the creditor scheme and costs related to the implementation of its PN17 regularisation plan. The group's core earnings for 2024 was RM25.2 million.

Shares of Avangaad were up one sen or 3.6% to 29 sen on Thursday, giving it a market capitalisation of RM384.61 million. Year to date the stock is down by 3.3%.