Deleum's 70pct stake in PT OSA to boost Southeast Asia presence
KUALA LUMPUR: Oil and gas services provider Deleum Bhd's 70 per cent acquisition of PT OSA Industries Indonesia (PT OSA) for RM31.3 million is set to enhance its presence in Southeast Asia, strengthen its technical expertise in valve services, and broaden its operations within Indonesia.
In a research note today, MIDF Amanah Investment Bank (MIDF) opined that the acquisition, carried out through Deleum's wholly owned subsidiary Deleum Services Sdn Bhd, also complemented the group's current valve business under its subsidiary, Penaga Dresser Sdn Bhd.
"The acquisition aligns with the group's expected growth trajectory, and we had anticipated it as a logical step to support long-term operational benefits.
"Going forward, Deleum will likely focus on integrating PT OSA's operations and aligning business processes," it said.
MIDF said the integration with PT OSA is expected to unlock synergies such as improving valve lifecycle management services, streamlining delivery mechanisms, and fostering knowledge sharing with the Indonesian team.
"We make no changes in its forecast projection for Deleum, as we had factored in this acquisition in its estimates.
"We maintain our 'buy' call, with a target price of RM1.92," MIDF said.
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