Bumi Armada and MISC Explore Merger Agreement

Bumi Armada Bhd has signed a non-binding memorandum of understanding (MoU) with MISC Bhd to explore a merger involving MISC's offshore business through an all-share transaction. The proposed merger aims to create a prominent floating production entity that will remain listed on Bursa Malaysia and leverage the combined resources and expertise of both companies. The MoU is effective for nine months, during which both parties will conduct due diligence and negotiate definitive agreements. Talks are reportedly at an advanced stage, with a share swap likely to give MISC a significant minority stake in Bumi Armada. Bumi Armada, controlled by tycoon T. Ananda Krishnan, has been expanding its operations in Asia, particularly in low-carbon solutions and energy transition initiatives. The merger could enhance competitiveness in the capital-intensive offshore production sector.