KUALA LUMPUR, Malaysia (July 8): Enra Group Bhd has proposed paying RM60 million to MTU Services (Malaysia) Sdn Bhd for four properties and selected assets such as plant, equipment, stocks, and machinery. Enra, which has made a non-binding indicative offer for the assets, said that RM33 million of the consideration will be paid in cash, with the remaining RM27 million in new Enra shares at RM1 per share.
On a triple net rental basis, Enra will lease the said assets back to MTU Services for up to nine years at RM3.3 million per annum or 18 percent of MTU Services’ annual income, whichever is higher.
Enra Energy Solutions Sdn Bhd, a wholly-owned subsidiary of Enra, has also suggested collaborating with MTU Services to grow ENRA’s existing maintenance, repair, and overhaul (MRO) business, according to a release.
MTU Services specializes in maintenance and repair services for the marine, automotive, defense, and power industries.
Enra wants to partner with MTU Services to investigate new potential in MRO services for various industries, in addition to property development and investment, speciality chemicals, and floating storage and offloading solutions for the oil and gas industry.
“Enra is optimistic that its relationship with MTU Services will enable both Enra Energy Solutions and MTU Services to offer a unique selling concept to prospective customers, allowing them to extend their presence in the MRO sector across diverse industries,” the company stated.
Enra’s stock fell 7.5 sen today, or 8.67 percent, to 79 sen, valuing the company at RM106.59 million./n
