PDZ awaits due diligence on Indonesian assets buy

Malaysian firm PDZ Holdings Bhd expects to complete its due diligence for the acquisition of oil and gas (O&G) assets in Indonesia in the next one month, which could result in an injection of a new shareholder in the container liner firm if the purchase is done through a share swap deal, according to The Malaysian Reserve.

PDZ MD and Pelaburan Mara Bhd?s (PMB) CEO Nazim Rahman said PDZ is still weighing its option on the funding for the O&G assets, which include paying cash, a share swap or a combination of both.

PMB acquired a stake in PDZ in April and is currently the largest shareholder with a 30% equity in the shipping-related firm.

The decision will rest on the outcome of the due diligence as it will determine the pricing for the purchase based on the valuations determined by the due diligence.

In an interview with The Malaysian Reserve, Nazim said the assets involve upstream and downstream activities but did not reveal the identity of the assets owners.

He said apart from internally generated fund to finance PDZ?s future expansion, the shipping firm may also look at raising funds through a corporate exercise, which may include rights issue.

According to him, PDZ is looking to expand its vessels fleet as well as its logistic business.

?As for now we have five vessels operating, which three of them are wholly owned. However, we do plan on increasing the number of vessels in the near future,? added Nazim. (*)