Ideal Jacobs venturing into O&G sector

PETALING JAYA: Ideal Jacobs (Malaysia) Corp Bhd has entered into a heads of agreement (HOA) with Cekap Technical Services Sdn Bhd and MECIP Global Engineers Sdn Bhd, to facilitate the listing of the two oil and gas companies in a reverse takeover (RTO) exercise at a yet to be determined price.
The RTO would see Ideal Jacobs or a special purpose vehicle (SPV) acquiring the entire issued and paid-up share capital in Cekap and MECIP. Cekap is in the business of integrated multi-disciplined project management, project services and integrated operations in the oil and gas industry, while MECIP is in multi-disciplined engineering consultancy services for the oil and gas industry and licensed by Petronas for the provision of consultancy services, engineering design services and manpower supply.
Ideal Jacobs will buy Cekap from Md Nazir Md Kassim and Sofiyan Yahya, and MECIP's from Ahmad Nazari Ashari, Mohd Nor bin Abd Basar, Ali Shastry @Haslan Husain and MECIP (M) Sdn Bhd. The acquisition will be satisfied through the issuance of new shares at an issue price of 25 sen per share.
"The proposed RTO aims to provide existing shareholders of Ideal Jacobs with an opportunity to benefit from Cekap's and MECIP's growth potential in the oil and gas industry," it said in press statement yesterday.
The RTO exercise would also see the vendors of Cekap Technical Services and MECIP undertake an offer for sale of their shares. A definitive agreement is to be signed within 60 days.
Ideal Jacob's shares which have been suspended since June 13, 2014 pending a material announcement, closed at 33 sen on the last day of trading.
The issue price of 25 sen is a discount of 9.8% to the one month volume weighted average market price (VWAP) of 27.73 sen of Ideal Jacobs 10 sen shares up to June 12, 2014.
The issue price also took into account the audited consolidated net assets (NA) attributable to the owners per existing share as at Dec 31 2013 of about 17 sen, and the the unaudited consolidated NA per existing share as at March 31, 2014 of about 16 sen.
Ideal Jacobs' current chairman Andrew C. Jacobs and its CEO and managing director Ben B. Meng would buy out the existing business of the company for a cash consideration to be determined later in a management buyout exercise.
The entire RTO exercise will be subject to a due diligence exercise and inter-alia, the approval of Bursa Malaysia Securities Bhd and the shareholders of Ideal Jacobs.
Ideal Jacobs subsidiaries are involved in graphic overlays, nameplates, custom labels, membrane switches, fabric over foam gaskets, die cut components, injection moulded panels and machined parts.
It serves clients in the telecommunications, electronics, banking and pharmaceutical industries with the company's geographic reach spanning from China, Hong Kong, Taiwan, Malaysia, Thailand, Philippines, other countries in Asia, Poland and Russia.