KUALA LUMPUR: Deleum Bhd has signed a heads of agreement (HOA) to undertake a due diligence exercise on an acquisition target in Indonesia.

       In a statement, the oil and gas services provider said it inked the agreement 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.

       According to the group, its 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 US$7mil (RM33.1mil), representing 70% of the total valuation of US$10mil, subject to the satisfactory outcome of the due diligence and finalisation of the definitive agreements.

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       "Growing our presence in Indonesia is our strategic goal, given the enormous potential for our business growth in this market," said group CEO Rao Abdullah.