Propel Global Berhad announced the proposed acquisition of the remaining 39% stake in Best Wide Engineering (M) Sdn Bhd for a proposed valu of RM6.19 million which willl increase the Group's ownership of BWE from 51% to 90%, further consolidating control over the firm/
BWE has over two decades of experience in the oil and gas sector, specialising in engineering, procurement, construction, and commissioning ("EPCC") services. Propel Global initially acquired a 51% stake in BWE on 6 January 2023, and this latest acquisition is expected to significantly boost the Group's service offerings in the O&G sector, particularly in plant construction, equipment design, and process systems. By increasing its stake in BWE, Propel Global aims to fully capitalise on future profit growth and expand its market presence in both onshore and offshore O&G operations.
Ms. Angeline Lee, Executive Director / Group Chief Executive Officer of Propel Global said, "This acquisition reflects our strong commitment to expanding our presence in the oil and gas sector. Acquiring the remaining stake in BWE allows us to enhance our core business and fully leverage its growth potential. Propel Global remains focused on driving sustainable growth and delivering value to our stakeholders as we continue to strengthen our position in the industry."
Furthermore, the Group has proposed a private placement of up to 10% of its issued shares, which will allow Propel Global to raise up to RM8.25 million in gross proceeds. The funds raised will be allocated towards business expansion plans, working capital for overheads, and estimated expenses related to the placement. The private placement will provide additional financial flexibility to support the Group's growth ambitions without incurring interest-bearing debt.
