Deleum plans to dispose of technology unit to Ocean Vantage for RM13 million

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Deleum plans unit disposal

Highlights

Deleum Bhd agrees to sell an 86.67% stake in Deleum Technology Solutions to Ocean Vantage for RM13 million through two subsidiaries.
Ocean Vantage will acquire full ownership of DTS upon completion of the transaction, subject to board approvals and financier conditions, within 90 days.
Deleum said the disposal aligns with its asset optimisation strategy, with proceeds strengthening its financial position; Deleum shares fell 1.53% to close at 96.5 sen.

This article was translated from the original. Read the original version by our correspondent here.

Transaction details and agreement timeline

The Edge Malaysia reported that Deleum Bhd has entered into a preliminary agreement with Ocean Vantage Holdings Bhd to sell its 86.67% interest in Deleum Technology Solutions Sdn Bhd, according to the company’s stock exchange filing. The agreement was signed by Deleum’s wholly owned subsidiary Deleum Services Sdn Bhd and its wholly owned unit Delcom Holdings Sdn Bhd with Ocean Vantage, which is listed on the ACE Market and provides services and investments in the energy and utilities sectors.

Under the proposed disposal, Deleum Services will sell its 60% stake in DTS, involving 594,000 shares, while Delcom Holdings will dispose of its 26.67% stake, involving 264,000 shares, for total cash consideration of RM13 million. DTS, incorporated in 2011, provides integrated corrosion and inspection services, blasting technology, and maintenance, construction and modification services for tanks, vessels, structures and pipelines.

Separately, Datuk Halmi Khalid, who owns the remaining 13.33% interest in DTS, has also signed a preliminary agreement with Ocean Vantage to sell his entire stake. The two proposed transactions are interdependent, with Ocean Vantage intending to acquire full ownership of DTS upon completion.

The parties have agreed to negotiate and, subject to approval by their respective boards of directors, enter into definitive share sale agreements within 90 days from the date of the preliminary agreement or within any mutually agreed extension period. However, Deleum stressed that the execution of the definitive agreements and completion of the disposal remain subject to several conditions, including the necessary approvals from financiers or third parties.

Impact on capital strategy and market valuation

Deleum said the proposed disposal is in line with its strategy to optimise its asset portfolio and focus resources on businesses aligned with its priorities. The company said the move also creates an opportunity to realise the value of its investment in DTS and improve the group’s capital allocation.

According to Deleum, the disposal proceeds will strengthen its financial position and provide greater flexibility to redirect capital towards businesses and opportunities with stronger earnings visibility and growth potential. On Monday, Deleum shares closed 1.5 sen, or 1.53%, lower at 96.5 sen, giving the group a market capitalisation of RM387.5 million, while Ocean Vantage closed unchanged at 25 sen with a market capitalisation of RM112.86 million.

Deleum also cautioned that there is no assurance that the share sale agreements will be executed or that the proposed disposal will proceed as planned. This means the transaction remains at an early stage, despite the strategic direction of both parties having been outlined through the preliminary agreement.

In our earlier report on a series of corporate actions by listed companies in Malaysia, we compiled several key announcements involving financing, investments and asset disposals across various sectors. At the time, we highlighted how measures such as rights issues, capacity expansion and restructuring transactions reflected companies’ efforts to strengthen their financial positions, optimise portfolios and unlock the value of existing assets.

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