KUALA LUMPUR:'' BOUSTEAD HOLDINGS BHD [] has entered into a memorandum of understanding with DRIR Equities Sdn Bhd (DRIRE) and Tulus Sejagat Sdn Bhd (TSSB) to acquire 10.2 million shares of RM1 each in MHS Aviation Bhd, representing 51% equity interest therein and 51% equity interest in a special purpose vehicle that shall purchase all the helicopters and aircrafts owned by the subsidiaries of DRIRE.
MHS is principally involved in the provision of air transportation, flight support, flight training, engineering and technical services to oil and gas companies.
The major shareholders of MHS are DRIRE and TSSB where DRIRE has 90% interest and TSSB has 10% interest.
In a filing to Bursa Malaysia on Wednesday, Dec 22, Boustead said the proposed acquisition was to complement and strengthen its portfolio in the oil and gas industry.
It said MHS was awarded a contract by Petronas Carigali Sdn Bhd (Petronas Carigali) in August this year to provide rotary wing aircraft, equipment and services (for heavy type aircraft ' EC225) for a period of ten years with an option to extend for another five years commencing from April 1,'' 2011 to March 31,'' 2021.
'The board believes that the new contract secured by MHS from Petronas Carigali and other firm contracts amounting to approximately RM3.1 billion, which will span over 10 years, will further ensure the continued revenue from air charter business and utilisation of the aircrafts for the benefit of Boustead group.
'The venture into the air charter business will be undertaken together with the existing shareholder of MHS who will still hold 49% interest in MHS in order to secure and retain the required experience and expertise in the air chartering business,' it said.
Boustead said the parties had agreed that the total purchase price for the proposed acquisition would not exceed RM100 million subject to result of the due diligence where RM60 million shall be for the payment of the sale shares and RM40 million shall be for the payment of the shares in aircrafts.
The amount due to DRIRE and TSSB in respect of the sale shares shall be apportioned according to the number of shares in MHS to be sold by DRIRE and TSSB to Boustead, it said.
MHS is principally involved in the provision of air transportation, flight support, flight training, engineering and technical services to oil and gas companies.
The major shareholders of MHS are DRIRE and TSSB where DRIRE has 90% interest and TSSB has 10% interest.
In a filing to Bursa Malaysia on Wednesday, Dec 22, Boustead said the proposed acquisition was to complement and strengthen its portfolio in the oil and gas industry.
It said MHS was awarded a contract by Petronas Carigali Sdn Bhd (Petronas Carigali) in August this year to provide rotary wing aircraft, equipment and services (for heavy type aircraft ' EC225) for a period of ten years with an option to extend for another five years commencing from April 1,'' 2011 to March 31,'' 2021.
'The board believes that the new contract secured by MHS from Petronas Carigali and other firm contracts amounting to approximately RM3.1 billion, which will span over 10 years, will further ensure the continued revenue from air charter business and utilisation of the aircrafts for the benefit of Boustead group.
'The venture into the air charter business will be undertaken together with the existing shareholder of MHS who will still hold 49% interest in MHS in order to secure and retain the required experience and expertise in the air chartering business,' it said.
Boustead said the parties had agreed that the total purchase price for the proposed acquisition would not exceed RM100 million subject to result of the due diligence where RM60 million shall be for the payment of the sale shares and RM40 million shall be for the payment of the shares in aircrafts.
The amount due to DRIRE and TSSB in respect of the sale shares shall be apportioned according to the number of shares in MHS to be sold by DRIRE and TSSB to Boustead, it said.
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