GFM Services Berhad announce that it had entered into heads of agreement with Shapadu Corporation Sdn Bhd and Shapadu Energy Sdn Bhd for a potential acquisition of 45% equity interest in SESB, for an indicative total purchase consideration of RM30 million.

The group said the purchase consideration is indicative at this juncture and may be subject to adjustments depending on any further negotiations, the outcome of the due diligence to be conducted and the execution of the Definitive Agreement.

Presently, SESB's 60% owned subsidiary (i.e. SCRA) is a holder of the Integrated Turnaround Main Mechanical & Maintenance Mechanical Static ("TA4MS") contract, which is a contract executed with Pengerang Refining Company Sdn Bhd and Pengerang Petrochemical Company Sdn Bhd which are two joint venture companies formed between Petroliam Nasional Berhad and Saudi Aramco. Holders of the TA4MS contract are allowed to provide plant turnaround services to PRefChem as and when required by PRefChem during the duration of the TA4MS contract.

GFM's wholly owned subsidiary, Highbase Strategic Sdn Bhd also operates a TA4MS contract. The Board opines that the Proposed Acquisition may allow GFM and its subsidiaries to expand its business operations and enhance its presence in the oil and gas facilities management sector, specifically amongst holders of the TA4MS contract.