KUALA LUMPUR (Sept 1): Alam Maritim Resources Bhd (KL:ALAM) has proposed to acquire an offshore support vessel (OSV) for US$19.8 million (RM80.8 million) in cash to expand its subsea services capabilities in the oil and gas sector.
The transaction will be carried out through its wholly owned subsidiary, Alam Maritim (M) Sdn Bhd (AMSB), which will acquire the 65-metre vessel from Singapore-based shipbuilder POET Shipbuilding & Engineering Pte Ltd, according to a bourse filing on Tuesday.
The filing noted that AMSB is exercising a vessel purchase option agreement originally entered into in December 2025, for which an option fee of US$900,000 (RM3.67 million) was paid. The option fee will be credited towards the first instalment of the purchase price upon signing the definitive shipbuilding contract.
The option was extended twice and the latest expity date is Oct 31, 2026.
To fund the acquisition and related sailing and maintenance expenses totalling RM44.66 million, the group plans to use RM44.66 million from internally generated funds alongside RM40.4 million in bank borrowings.
"The proposed OSV acquisition will enable the group to own and operate an additional OSV unit, thereby expanding and enhancing its capacity as well as capabilities to provide subsea services within the O&G sector," said Alam Maritim.
This comes as the group actively rebuilds its business pipeline following its recent exit from Practice Note 17 (PN17) status on June 8.
The acquisition will bring its fleet to five OSVs. The current four vessels are under bareboat or time charters.
The fifth vessel construction is expected to be completed by October 2028, subject to shareholders' approval at an upcoming extraordinary general meeting.
Alam Maritim said its subsea segment contributed RM415.4 million or 86.72% of total group revenue for the financial year ended June 30, 2025. Meanwhile, as of June 30, 2026, the group's subsea contract order book stood at RM1.55 billion.
Berjaya Securities Sdn Bhd is acting as the principal adviser to Alam Maritime for the proposed OSV acquisition.
Alam Maritim shares closed half a sen or 1.96% lower at 25 sen on Tuesday, giving the group a market capitalisation of RM111.4 million.
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