Beng Kuang Group announced that it has signed a term sheet to acquire a 49 per cent equity stake in Asian Sealand Offshore and Marine for SG$60 million ($45 million). The transaction will result in the group holding 100 per cent ownership of the firm.
The total payment consists of SG$20 million in cash to be paid at the completion of the deal. It also includes SG$20 million to be satisfied through the issuance of 57,142,857 new ordinary shares at an issue price of SG$0.35 per share.
An additional deferred and contingent consideration of up to SG$20 million will be payable in cash. This payment depends on the subsidiary achieving a net profit of at least SG$15 million for the 2026 and 2027 financial years, the group confirmed.
The group reported that the acquisition will enable the full recognition of the earnings and cash flows from Asian Sealand Offshore and Marine. It noted that the subsidiary provides life extension and operational reliability solutions for offshore floating production assets.
Chief Executive Officer of Beng Kuang Group, Yong Jiunn Run, remarked that the business has delivered consistent revenue growth and resilient profitability. He noted that its business model is supported by recurring demand across more than 20 offshore floating assets globally.
He further mentioned that the transaction is structured with performance-based safeguards to ensure alignment.
Beng Kuang Group noted that the acquisition would have increased the earnings per share of the company for the 2025 financial year from SG$0.26 to SG$0.48 had it been completed on January 1, 2025. This would represent an increase of approximately 84 per cent.
The company is also undertaking a private placement to strengthen its capital base. It will convene an extraordinary general meeting to seek shareholder approval for the acquisition and the allotment of the new shares.