KUALA LUMPUR (June 16): Deleum Bhd (KL:DELEUM) is buying Thailand-based MPC Future Co Ltd's oilfield service assets and business for RM60 million through a combination of cash and share issuance in a subsidiary, to expand its portfolio and services offering in Thailand.

The acquisition will include slickline, hydraulic workover and well head maintenance assets from MPC Future, an oil and gas services firm, according to Deleum's bourse filing Monday (June 16).

Deleum's indirect subsidiary, Deleum Oilfield Solutions (Thailand) Co Ltd (DOST) has inked a sale and purchase agreement for the acquisition. New and preference shares in DOST will be issued to MPC Future under the deal, valued at 278.8 million baht (or RM36.43 million), while the remaining RM23.57 million will be settled in cash.

The arrangement will result in MPC Future holding 48.34% in DOST, while Deleum will hold 49.93%. Suthee Chivaphongse, a director and major shareholder of DOST, will retain a 1.73% stake. Suthee previously owned 50% of DOST.

Upon completion, Deleum intends for DOST to remain an indirectly-owned subsidiary, given that it will have the right to appoint and remove a majority of the directors in DOST.

Deleum said the acquisition represents a strategic opportunity for the group to expand its portfolio and service offerings in Thailand by leveraging MPC’s knowledge, expertise and facilities.

The transaction, expected to be completed in the second half of this year, is intended to transform the Deleum group of companies into a key contender for projects in Thailand, it added.

Shares in Deleum rose 7.1% or 11 sen to close at RM1.65 on Monday, valuing the group at RM662.56 million. Year to date, the stock has gained 19.6%.