Malaysian offshore energy facilities provider Bumi Armada said on Thursday that it was in talks with MISC to explore a merger with the maritime conglomerate's offshore unit.
In a Bursa Malaysia filing, Bumi Armada said they had entered into a non-binding memorandum of understanding with MISC to explore a merger with its offshore business.
"The parties intend to co-operate in good faith and exclusively with each other to achieve the objectives of the proposed merger," it said.
Bumi Armada said the agreement will be effective for nine months from the date its signing and does not have any legal binding effect except on exclusivity and confidentiality.
Separately, MISC, in a Bursa Malaysia filing confirmed that it had entered an agreement with Bumi Armada.
It said the proposed merger was at an early stage of evaluation and there was no certainty that the ongoing discussions between both parties would result in an entry into any binding agreement nor the completion of the proposed merger.
(Reuters - Reporting by Aaditya Govind Rao in Bengaluru and Ashley Tang in Kuala Lumpur; Editing by Sonia Cheema and Tomasz Janowski)
AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week
