Scomi to sell stake in oilfield arm
Malaysian oil services company Scomi Group is selling a 19.9% stake in its oilfield business to a group of investors led by Standard Chartered Private Equity for $99.5 million, according to a media report.
Scomi will also defer a plan to list the oilfield business in Singapore, Malaysia's Business Times reported.
Scomi plans to use the cash from selling Scomi Oilfield to support its growth plan and reduce its debt of $74 million, the newspaper said
"This approach allows Scomi to retain its significant shareholding in the oilfield services business while achieving our objective of de-gearing and strengthening our balance sheet,” Scomi chief executive officer Shah Hakim Zain was quoted as saying.
The purchase price is based on an equity valuation of $500 million for Scomi Oilfield with a floor valuation of $416 million.
The deal is expected to be completed within three months.