Ramunia Buys Fabrication Yard For RM135m
The Sun (Financial Daily)
18 July 2006

Ramunia Holdings Bhd is acquiring a 32.37ha fabrication yard in Kota Tinggi, Johor for RM135 million from its holding company Ramunia Energy & Marine Corp Sdn Bhd (Remcorp) in line with its expansion plans to modernize and upgrade its existing fabrication yards.

The Company is also proposing a RM 129.4 million fund-raising exercise involving a proposed renounceable restricted issue of up to 68.4 million shares of 50 sen each at RM1 apiece and proposed private placement of up to 45.5 million shares.

Announcing the deal yesterday, Ramunia said the acquisition of the fabrication yard would be satisfied by RM75 million cash and the issue of 43.79 million new Ramunia shares at RM1.37 each.

“With the expected influx of projects and given the upsurge in global oil prices and flourishing outlook in the global markets, Ramunia’s existing yard capacity will be strained to undertake such additional projects, thus impacting Ramunia’s competitive advantage and indirectly affecting Ramunia’s future capability in tendering for new projects,” it said.

Ramunia is involved in the fabrication of offshore oil and gas related structures and other related civil works.

The company said it had an order book of over RM600 million and was the process of bidding for projects worth up to RM3.3 billion, of which 15 % are overseas projects such as in India, Saudi Arabia and Qatar.

The company said the acquisition of the property would double its comprehensive steel fabrication facilities area to about 68ha and its rated capacity to undertake fabrication works would increase to 60,800 tonnes from 30,800 tonnes,

It said the fund raising exercise would enable the company to modernize and upgrade its fabrication yards over the next two financial years, including investments in capital expenditure of key plants and machinery to improve and expand its capabilities.