Deleum Berhad has strengthened its valve solutions capacity with the acquisition of a 70% stake in Indonesia-based PT OSA Industries Indonesia for US$7 million (approximately RM31.3 million).
The deal was formalised through a Share Purchase Agreement signed by Deleum's wholly-owned subsidiary, Deleum Services Sdn Bhd (DSSB), represented by Group Chief Executive Officer Rao Abdullah, and PT OSA's vendor, OSA Industries Pte Ltd, represented by its Director, Ong Siow Aik. The remaining 30% of PT OSA will remain with the existing Indonesian shareholder.
Established in 1994, PT OSA specialises in valve supply and maintenance services for the oil and gas sector in Indonesia, serving energy majors with its exclusive partnership with Baker Hughes for valves and actuators. The company operates with a team of 72 and a service facility in Cikarang, Indonesia.
Rao Abdullah emphasised the strategic importance of the acquisition, stating, "With an enlarged and comprehensive pool of strong technical expertise in total valve management solutions, I have no doubt that our collective experience will enhance service quality for our customers."
The acquisition will be funded through internally generated funds and bank borrowings. PT OSA has guaranteed profits totalling US$2.7 million (RM12.1 million) across 2024 and 2025. The acquisition is expected to conclude in the first half of 2025.
Deleum's valve management segment, represented by Penaga Dresser Sdn Bhd, already serves the Malaysian market with Baker Hughes products. The addition of PT OSA will expand Deleum's regional footprint and offer cross-border growth opportunities in the dynamic South East Asian valve market.
Highlighting Deleum's balanced growth approach, Rao noted the company's revenue growth from RM587 million in 2020 to RM792 million in 2023, alongside operating profit increases from RM27 million to RM80 million over the same period.
Rao concluded, "Deleum remains steadfast in expanding our solutions and leveraging opportunities in the energy sector across the region, propelled by our financial strength and focus on excellence."