KUCHING: Ocean Vantage Engineering Sdn Bhd (OVE) has proposed to dispose of a 70 per cent equity interest in Stellar Star Engineering & Construction Sdn Bhd (SSEC) for RM70.
OVE has entered into a share sale agreement (SSA) for the disposal of 210,000 ordinary shares (70 per cent) in SSEC with Muhammad Sulaiman Hanafie.
“The purchase price for the proposed disposal is RM70 and is determined on a willing buyer-willing seller basis after taking into consideration SSEC’s unaudited net liabilities as of October 31, 2024, which amount to approximately RM10.6 million.
“The buyer accepts and agrees to assume all liabilities of SSEC on a willing buyer basis with full knowledge of SSEC’s state of affairs and financial position. The buyer agrees to fully release and discharge OVE, without holding OVE accountable for any claims whatsoever that any party may have against SSEC,” said Ocean Vantage Holdings Bhd (OVH), which owns 100 per cent equity interest in OVE, in a filing with Bursa Malaysia.
OVH stated that upon completion of the proposed disposal, the company is expected to realise a gain of approximately RM7.4 million in the financial year ending December 31, 2024. The company’s original cost of investment in SSEC in September 2020 was RM210,000.
“The proposed disposal aligns with OVH’s strategic objective to optimise its investment portfolio and focus on its core business. The disposal consideration will enhance cash flow and provide additional financial flexibility.
“The net proceeds of the proposed disposal, after deducting all fees and expenses, will be utilised for working capital purposes,” said OVH, an integrated support service provider for the upstream and downstream segments of the oil and gas industry.
OVH plunged into the red with a group net loss of approximately RM6.8 million on sharply lower revenue of RM19.67 million in the third quarter ended September 30, 2024 (3Q2024), compared to a net profit of RM5.5 million on revenue of RM39.38 million in 3Q2023.
The company’s managing director, Kenny Ronald Ngalin, attributed the loss largely to cost escalation and project-specific challenges linked to the nearing completion of the Bintulu Additional Gas Sales Facility 2 (BAGSF 2) project.
He explained that escalating costs in the BAGSF 2 project were driven by rising material and manpower expenses.
OVH has experienced major shareholding changes recently, as its largest shareholder, Martin Philip Ik Piau — also OVH’s executive director — sold his entire stake (74,536,600 shares or 17.749 per cent) in direct business transactions for RM15.2 million. Also disposing of his entire stake (782,000 shares or 0.186 per cent) was executive director Yau Kah Tak and his wife, Mary King Siaw Ning, who sold 22,606,700 shares (5.005 per cent).
Martin Philip, 52, and Yau resigned from the company on October 1 and November 1, 2024, respectively.
The new substantial shareholders in OVH are Majuco Motor Sdn Bhd (41,993,956 shares or 10 per cent), Pertanian Teguh Jaya Sdn Bhd (32,542,644 shares or 7.749 per cent), and Resources Hub Logistics Sdn Bhd (37,656,500 shares or 9.216 per cent).
OVH recently appointed Willie Ho Huat Voon, 35, as the company’s chief executive officer (CEO).
Ho, who is linked to Majuco Motor, obtained his Bachelor of Engineering (Chemical Engineering) degree from the University of Queensland, Australia. He has over 12 years of experience in the energy and resources industry across Australia and New Zealand.
According to OVH, Ho possesses extensive expertise in the upstream oil and gas sector, particularly in oilfield services, well completions, and engineering. His diverse career includes roles in business ownership, general management, technical and engineering disciplines, operations, procurement, sales, finance, and project management.
Among the positions Ho has held is General Manager (Commercial and Engineering) at Condor Energy Services Ltd.
OVH also recently appointed Ong Sheik Yoong, 41, as an independent director. Ong is a member of the Malaysian Institute of Accountants (MIA).
