More moves are afoot in Malaysia with Tanjung Offshore reported to be in the final stages of a MYR1bn ($318.2m) deal to acquire a controlling stake in a foreign oil and gas (O&G) company that owns and manages several offshore oil rigs.
Local reports quoted sources as saying that if the deal goes through, this would clear the way for a change in Tanjung Offshore's main business. The company was previously an offshore supply vessel (OSV) operator and owner, before selling that business.
Although it has MYR100m in cash from the disposal of its shipping assets, Tanjung Offshore has been struggling to perform over the past year.
According to sources, Tanjung Offshore would fund the purchase by issuing new shares and bonds as well as through cash, with investment bankers and advisers in the process of being appointed.