Ramunia Fabrication Yard Deal With Oilcorp

On the Edge Financial: One day too late for Oilcorp?

• .... According to a filing with Bursa by Ramunia, Oilcorp’s 51% indirectly owned subisidiary Oilfab Sdn Bhd had accepted a letter of offer from Ramunia to acquire its Pulau Indah fabrication yard assets located on it for RM83.8 million on Jan 25.
  
  According to Ramunia, RM80 million of the purchase price would be satisfied via the issuance of 156.86 million new Ramunia shares to Oilfab at an issue price of 51 sen each while RM3.8 million would be paid for in cash.
  
  What is interesting about the deal is that Oilcorp was also delisted from Bursa on the same day. This certainly raised questions on the timing of the deal. Could the deal have saved Oilcorp from delisting had it sold the asset earlier?

And since it's now delisted... what will happen to this money?????

Such a huge asset sale... the timing of it ... yeah.. could the deal save OilCorp from being delisted?

• ... The acquisition may be a boon for Ramunia which found itself without a core business when it sold off its fabrication yard in Teluk Ramunia for RM515 million cash to Sime Darby Bhd last year.
  
  It was cash-rich after the disposal and was on the lookout to acquire other yards.
  
  Ramunia recently confirmed that it is in talks to acquire Syarikat Borcos Shipping Sdn Bhd which has a common shareholder in pilgrim fund Lembaga Tabung Haji (LTH). LTH holds 84% and 25.17% stakes in Borcos and Ramunia respectively.
  
  It has also signed a deal with Pleasant Engineering Sdn Bhd to utilise the latter’s yard, and expects to commence operations at the Pulau Indah fabrication yard next month via a tenancy agreement with Oilcorp.
  
  For FY10 ended Oct 31, Ramunia posted a net profit of RM65.79 million from RM34.86 million in revenue. For FY09, it had suffered a net loss of RM52.72 million on the back of RM296.67 million in revenue.
  
  Its cash and bank balances stood at RM27.8 million with an additional RM103.75 million in short terms deposits, and no bank borrowings.

Yeah... I also find the chain of events to be truly remarkable.

Ramunia... used to own a fabrication yard. ( Could someone tell me why they sold to Sime Darby? :P ). So it has zero business left. And what does Ramunia do? Buy back a smaller fabrication yard?

I am confused.

So confused.

:P