KUALA LUMPUR (July 2): Facility management firm GFM Services Bhd (KL:GFM) said on Wednesday it is acquiring a 60% stake in oil and gas services provider Shapadu Energy Sdn Bhd for RM30 million cash, as the group seeks to deepen its footprint in high-value energy-related maintenance services.
In a filing with the bourse, GFM said it will buy the stake from Shapadu Corp Sdn Bhd. The deal to buy into Shahpadu Energy was first reported by The Edge in December 2024 and follows a head of agreement signed later that week, in which GFM had initially proposed to acquire a 45% stake for the same amount.
In a statement on Wednesday, GFM added that it has also entered into a conditional call option agreement that gives Shapadu Corp the right to buy back a 15% stake in Shapadu Energy for RM10 million within 24 months of the acquisition's completion. In its rationale it said this was to allow GFM to grow its oil and gas facilities management business, while also giving Shapadu Corp the option to buy back part of its shares in Shapadu Energy later.
GFM said it intends to finance the RM30 million purchase through a combination of internally generated funds and bank borrowings, with the final composition to be determined later.
Its managing director Ruslan Nordin said the acquisition marks a strategic move to strengthen the group’s capabilities in the oil and gas facilities management sector.
“It represents a key milestone in the group’s long-term strategy to strengthen and expand our presence in this high-value segment,” he said, adding that the transaction will provide GFM with immediate access to Shapadu Energy’s customer base, resources, and expertise.
Shapadu Energy, through its 60%-owned unit Shapadu CR Asia, holds a key contract for integrated turnaround, mechanical, and maintenance mechanical static services from Pengerang Refining Company Sdn Bhd and Pengerang Petrochemical Company Sdn Bhd — both joint ventures between Petronas and Saudi Aramco.
Following the acquisition, GFM will own 60% of Shapadu Energy, with the remaining 40% retained by Shapadu Corp. Shapadu Energy will operate as a subsidiary of GFM but continue to be managed independently.
Subject to regulatory approvals and barring unforeseen circumstances, the deal is expected to be completed by the second half of 2025.
Shares in GFM ended unchanged at 19.5 sen on Wednesday, valuing the group at RM144.41 million. The stock has declined 25% year to date.