DECEMBERASIA BUSINESS OUTLOOK8Propel Global Bhd has entered into a conditional share sale agreement to buy 51 percent of Best Wide Engineering (M)Sdn Bhd (BWE) for RM7.82 million. BWE is an oil and gas engineering firm, according to the oil and gas support services provider. Azizi Alias has 45.8 percent equity interest, Jasniazrin Shah Mohd Hata has 44.2 percent equity interest, and Tan Siew Lee has 10.0 percent equity interest. Azizi, who is selling his entire equity stake, and Tan, who is selling 5.2 percent of his holdings, are selling their 51 percent stakes to Propel.As part of the share sale agreement, Propel has also entered into a put and call option agreement with Jasniazrin and Tan, under which the company will purchase up to 49.0 percent of the remaining equity interest in BWE from them, and Jasniazrin and Tan will grant Propel Global the right to sell up to 34.0 percent equity interest in BWE to the company during the call option period. BWE reported RM18.6 million revenue and RM178,000 PAT in FY19; RM19 million revenue and RM395,000 PAT in FY20; and RM38.5mil revenue and RM2.3mil PAT in FY21.BWE currently has a tender book of RM41.3 million. "The acquisition is consistent with the group's strategy to grow the O&G business by expanding our offerings and strengthening our market presence as a provider of O&G engineering services". "BWE's EPCC expertise and experience complement the group's existing O&G business", Propel group CEO Angeline Lee said in a statement. "We believe that combining BWE's core competencies with the group will allow the latter to bundle a broader range of service offerings to its customers, giving it a competitive advantage over competitors". "In addition, the group will be able to tap into BWE's existing customer base for cross-marketing opportunities and an additional revenue stream", she added. NEWSROOMMALAYSIAN FIRM PROPEL GLOBAL TO ACQUIRE 51 PERCENT STAKE IN BEST WIDE ENGINEERING FOR RM7.82 MILLION
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