KUALA LUMPUR: Serba Dinamik Holdings Bhd is in an expansionary mode and has made plans to acquire international parts-manufacturing entities in the oil and gas industry.
Following the acquisitions, the company will become a one-stop engineering solution provider – offering engineering, procurement, construction and commissioning (EPCC) work; operations and maintenance (O&M) services; as well as parts supplies.
Its group chief executive officer Datuk Dr Mohd Abdul Karim Abdullah said the acquisitions will expand its capability to manufacture and trade parts as well as boost the group's profitability.
"(Our) acquisition plans are there. We have been undergoing intense discussions and negotiations. Some are almost at the tail end, meaning a transaction will happen and we will follow the necessary regulatory requirements in terms of making announcements.
"Our targets are parts manufacturers. The entities that we are looking at are based in Europe, the United States and the Middle East.
"The successful acquisitions will provide margin improvement to the group, reducing costs by one to two per cent, and enable margin generation of five to 10 per cent by the trading of parts," Abdul Karim told reporters here.
“(They will also) position the company more strongly as an O&M and EPCC entity," he added.
Half of Serba Dinamik Holdings’ capital expenditure budget of RM95 million this year has been earmarked for acquisition costs.
The group is expected to make an announcement on the acquisitions next month.
Early this year, Serba Dinamik acquired a 40 per cent stake in Konsortium Amanie JV Sdn Bhd for RM34 million.
The acquisition enabled Serba Dinamik to secure EPCC works with a total value of RM289.72 million.