Homegrown Loyz Energy has agreed to buy out Rex International's stake in the joint venture set up by the two Singapore-listed oil and gas companies.
Loyz subsidiary Loyz USA Holdings will pay US$4.5 million (S$5.7 million) for Rex's 49 per cent stake in Loyz Rex Drilling Services, which is held by Rex's subsidiary Rex US.
Loyz currently holds 51 per cent of the joint venture, which will become a wholly-owned subsidiary of Loyz after the transaction, the companies said in separate filings on the Singapore Exchange on Thursday.
Loyz will pay US$1 million of the price in cash and US$3.5 million in newly issued shares.
Loyz Rex Drilling Services is a provider of drilling and completion services for the oil and gas industry.
For the three-month period ended Sept 30, the net loss of Loyz Rex was about US$1.5 million (S$1.9 million) and the net tangible assets was negative US$1.2 million (S$1.6 million).
The acquisition is expected to "facilitate a more efficient decision-making process and full control of the two drill units", the company said in its statement on Thursday.