(603) 2295 7788
4 March 2024

Deleum fortifies its business presence in Indonesia

  • Signs HOA for due diligence exercise on an acquisition target in Indonesia 
  • Strategic opportunity to strengthen Deleum's regional presence 


KUALA LUMPUR, 4 March 2024 - Leading oil & gas (O&G) services provider Deleum Berhad (“Deleum” or the “Group”), grew 26.2% in the Group’s pre-tax profit to RM25.3 million for the third quarter ended 30 September 2023 (3Q23) from RM20.1 million previously, mainly due to the significant contribution from its Power and Machinery (P&M) segment.

Deleum has entered the HOA with five parties, namely OSA Industries Pte. Ltd. (OSA Industries), PT OSA Industries Indonesia (OSAII), PT OSA Megah Indonesia (PT OSA Megah), as well as Ong Siow Aik, a Singaporean, Erik Aristino and Fenty Herlinda, both Indonesian citizens. The HOA entails all parties to collaborate over a six-month period in facilitating Deleum’s due diligence on OSAII and PT OSA Megah, as well as to negotiate and finalise the definitive agreements for the proposed acquisition.

The HOA signifies Deleum’s strategic direction and commitment to strengthen its regional presence in the region, to create synergies and aims to bolster the Group’s earnings as well as its shareholder value. The proposed acquisition is also  being supported by an international service company with whom both Deleum and OSAII have had a good working relationship over the years.

Through the Group’s subsidiary, Deleum Services Sdn Bhd will acquire 70% of the issued share capital of OSAII held by Ong Siow Aik and OSA Industries for a consideration of USD7.0 million (equivalent to RM33.1 million), representing 70% of the total valuation of USD10.0 million, subject to satisfactory outcome of the due diligence and finalisation of the definitive agreements.

OSAII, established in 1994 in Indonesia, specialises in the repairing, reconditioning, and testing of valves, offering expert solutions to ensure optimal functionality. With a focus on quality and reliability, it also provides a diverse inventory of valves and supplies, catering to various industry needs. With its headquarters located in West Java, Indonesia, OSAII has built a reputable presence in the region.

“Growing our presence in Indonesia is our strategic goal, given the enormous potential for our business growth in this market. This HOA represents the critical first step towards realising our mission. We are committed to using this cooperation as a springboard for our larger goal, capitalising on the numerous opportunities that Indonesian market offers us.

As we proceed with due diligence and negotiation, we remain focused on delivering sustainable outcomes that align with our vision of being a leading player in the region.” - Rao Abdullah Group Chief Executive Officer, Deleum Berhad

Further information on the transaction, including the key terms of the definitive agreements and other information on OSAII, will be made available upon the execution of the definitive agreements.



About Deleum Bhd

Deleum Berhad is an investment holding company and through its subsidiaries, provides a diverse range of supporting specialised products and services to the oil and gas industry, particularly in the exploration and production sector. Its range of products and services is distinguished according to its three core business segments – Power and Machinery, Oilfield Services and Integrated Corrosion Solutions. Deleum is listed on the Main Market of Bursa Malaysia.



Additional Info

  • Publisher: Company Announcement
  • Banner: Banner
  • Type: News Release