Malaysian Firm Propel Global to acquire 51% stake in Best Wide Engineering for RM7.82mil

Propel Global Bhd has entered into a conditional share sale agreement to buy 51% 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% equity interest, Jasniazrin Shah Mohd Hata has 44.2% equity interest, and Tan Siew Lee has 10.0% equity interest.

Azizi, who is selling his entire equity stake, and Tan, who is selling 5.2% of his holdings, are selling their 51% 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% 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% equity interest in BWE to the company during the call option period.

BWE reported RM18.6mil revenue and RM178,000 PAT in FY19; RM19mil 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.