GFM buying 60pct Shapadu Energy stake for RM30mil
The integrated facilities management (IFM) services provider said the proposed acquisition follows the heads of agreement by both parties in December 2024.
GFM group managing director Ruslan Nordin said the proposed acquisition is a strategic step forward in scaling up the company's oil and gas FM capabilities and scope.
Ruslan said it represents a key milestone in the company's long-term strategy to strengthen and expand its presence in this high-value segment.
"By acquiring Shapadu Energy, we will gain access to an established customer base, resources, and expertise, particularly at the Pengerang Integrated Complex under the turnaround main mechanical and maintenance mechanical static (TA4MS) contract," he said.
The strategic value of the proposed acquisition is further supported by the robust financial performance of Shapadu Energy's subsidiary SCRA, which holds the TA4MS contract.
Over the past three years, SCRA demonstrated consistent revenue growth from RM37.2 million in the financial year ended December 31, 2021 (FY21) to RM114.7 million in FY24, representing 45 per cent compound annual growth rate.
Upon completion of the acquisition, Shapadu Corp will have a 40 per cent stake in Shapadu Energy.
Consequently, Shapadu Energy will become a 60 per cent-owned subsidiary of GFM and will remain an independently managed business unit under the company.
The RM30 million acquisition will be paid entirely in cash.
GFM said it intends to fund the acquisition through internally generated funds and/or bank borrowings, with the final composition to be determined at a later stage.
The proposed acquisition is expected to be completed by the second half of 2025.
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