Vallianz Holdings, a Singapore Catalist-listed company that owns and leases out vessels, has agreed to acquire a 50 per cent stake in Rawabi Swiber Offshore Services for US$1.45 million (S$1.82 million).
It will purchase the interest from Swiber Offshore Construction, a wholly-owned subsidiary of mainboard-listed offshore firm Swiber Holdings. Swiber Holdings is also a controlling shareholder of Vallianz Holdings, with a 28.88 per cent stake.
Rawabi Swiber Offshore Services is incorporated in Saudi Arabia and provides offshore marine support services for oil platforms and projects.
Vallianz's directors believe the acquisition is "in line with the group's strategic business directions to expand its asset base, focus on providing integrated offshore marine services to the major oil and gas companies, and further develop its customer base", the company said in a filing to the Singapore Exchange.
"The acquisition will also allow the group to establish a presence in the Kingdom of Saudi Arabia and the Middle East," it added.
The purchase will be funded by Vallianz's internal cash flows.