The Board of Directors of Bumi Armada announced that the Company had, entered into a non-binding memorandum of understanding with MISC Berhad to explore a prospective merger with MISC's offshore business via an all shares transaction. It is contemplated that the merged entity arising from the Proposed Merger will remain listed on Bursa Malaysia Securities Berhad and be among the leading floating production businesses globally with the scale, resources and financial capacity to compete in the growing and capital intensive offshore floating production segment. Further, the Proposed Merger will establish a Malaysian-based sector-focused entity which leverages the combined talent pool, project development and engineering capability, and know-how of both MISC's offshore business and Bumi Armada.
Pursuant to the MOU, the parties intend to co-operate in good faith and exclusively with each other to achieve the objectives of the Proposed Merger. In the event both parties agree to proceed with the Proposed Merger, following further assessment and satisfactory completion of due diligence, the parties may enter into negotiations on definitive agreement(s). The MOU is effective for a period of nine months from the date of the MOU, until the execution of definitive agreement(s) or termination of the MOU, whichever is the earliest unless otherwise agreed by the parties.
The MOU is not intended to have a legal and binding effect save for certain clauses relating to, among others, exclusivity and confidentiality.
