Beng Kuang Marine Limited to Acquire Remaining Stake in ASOM for S\$60 Million

Key Strategic Acquisition Strengthens Group’s Position in High-Value Offshore Services

Key Highlights

• Beng Kuang Marine Limited (SGX: BEZ) has entered into a definitive term sheet to acquire the remaining 49% equity stake in its subsidiary, Asian Sealand Offshore and Marine Pte. Ltd. (ASOM), for a total consideration of S\$60 million.
• ASOM is a specialist in high-value, mission-critical offshore lifecycle services, focusing on asset life extension, regulatory compliance, and operational reliability for offshore floating production assets. It operates under a unique embedded resident contractor model with recurring, long-term client relationships.
• Upon completion, Beng Kuang will own 100% of ASOM, consolidating all of ASOM’s earnings and cash flows.
• The acquisition is structured to include performance-based earn-out safeguards, aligning interests and ensuring capital discipline.
• Assuming the deal is completed on 1 January 2025, Beng Kuang’s pro forma FY2025 earnings per share (EPS) is expected to rise by 84%, from 2.61 to 4.80 Singapore cents per share—a potentially significant value accretion for shareholders.
• The proposal will be subject to shareholder approval at an extraordinary general meeting; further details will be announced in due course.

Transaction Structure

• S\$20 million to be satisfied by issuing and allotting 57,142,857 new ordinary shares in Beng Kuang at S\$0.35 per share.
• S\$20 million in cash, payable at completion.
• Up to S\$20 million in deferred and contingent cash consideration, payable only if ASOM’s net profit reaches at least S\$15 million over FY2026 and FY2027, providing both upside and risk mitigation for Beng Kuang shareholders.

Strategic Rationale and Implications for Shareholders

• ASOM has been a key contributor to Beng Kuang’s group revenue and profitability, driven by recurring offshore lifecycle service contracts with over 20 offshore floating assets globally.
• The acquisition is expected to strengthen Beng Kuang’s operational control, strategic flexibility, and earnings visibility, positioning the company for sustainable long-term growth.
• The private placement to bolster the company’s capital base will support future growth initiatives post-acquisition, potentially enhancing the company’s competitive edge within the offshore marine sector.

Management Commentary

CEO Yong Jiunn Run stated, “ASOM has been central to the Group’s transition into a higher-margin, asset-light and service-driven energy solutions platform, supported by structurally recurring demand for offshore asset integrity and life-extension services. Over the past few years, ASOM has delivered consistent revenue growth, strong cash flows and resilient profitability, underpinned by its embedded ‘resident contractor’ model across more than 20 offshore floating assets globally. The proposed acquisition allows the Group to consolidate 100% of ASOM’s earnings and cash flows, strengthening our operational control and long-term strategic flexibility. Importantly, the transaction is structured with performance-based earn-out safeguards, ensuring alignment and capital discipline. We believe this acquisition enhances earnings visibility, reinforces our competitive positioning within the offshore lifecycle services segment, and creates sustainable long-term value for shareholders.”

Shareholder Considerations & Price Sensitive Information

• This transaction marks a major strategic move that could materially impact Beng Kuang’s share price due to:
• Significant expected EPS accretion (84% increase).
• Full consolidation of a high-performing subsidiary with recurring revenues and strong profitability.
• Alignment of acquisition payouts with actual future performance, limiting downside risk to Beng Kuang shareholders.
• Shareholders should note the potential dilutive impact of the new shares issued as part of the consideration, and closely monitor future announcements regarding the extraordinary general meeting and terms of the private placement.

About Beng Kuang Marine Limited

Beng Kuang Marine Limited is a leading integrated solutions provider for the offshore and marine industries, listed on the Singapore Exchange since 2004. The company has transitioned towards an asset-light, service-oriented business model, seeking to deliver innovative solutions and sustainable value for its partners and shareholders.

For more information, visit Beng Kuang Group website.

Investor Contact

Media & Investor Relations:
Mr. Alex Tan
Mobile: +65 9451 5252
Email: [email protected]

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult a professional advisor before making investment decisions. The author and publisher bear no liability for any financial losses or actions taken based on the information provided above.

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