SINGAPORE - Shareholders of oil and gas contractor Gaylin Holdings have voted in favour of its plan to acquire its industry peer Amos International Holdings for $48.6 million in an all-shares deal.

Following the acquisition Amos will become a wholly-owned subsidiary of Gaylin, the company said in a media statement on Wednesday. Amos provides supplies, services and logistics solutions to the marine transportation sector, with operations in Singapore, Shanghai and Hong Kong.

Gaylin CEO Perry Kennedy said in the statement that the merged entity would be able to enjoy economies of scale.

He added: "As oil prices begin to stabilise, the offshore oil and gas sector looks to be following signs of recovery recently seen in the marine transportation sector. There is gradual increase in demand for our products and services. This is an opportune time to combine Gaylin and Amos, creating a pathway for us to bring Amos' broad range of products and services, including the new and promising Alcona brand to Gaylin's global offshore client network."

Gaylin also said that with the stronger balance sheet post-acquisition, it will look at further improving its capital structure and re-financing some of its debt at more favourable terms.

The acquisition will be funded by issuance of some 863 million new Gaylin shares at 6 cents apiece.

Gaylin shares last traded on Oct 1 at 5 cents.