TH Heavy wrapping up 81ha land buy soon?

Business Times was told that an announcement on the matter is expected to be made by as early as next week. "At this point, there are two options on the table. One is for THHE to buy the land directly, while the second option is for Tabung Haji to acquire the land and lease it to THHE," said a person with direct knowledge on the matter.

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/20130103234059/Article/index_html
Published: January 04, 2013

While the land purchase is not expected to draw market interest, the rationale behind the purchase could put THHE on investors' radar.

It is understood that THHE plans to set up an offshore oil and gas fabrication yard in Port Klang to help service the needs of national oil and gas company, Petroliam Nasional Bhd.

"Since MISC Bhd scaled down its oil and gas fabrication business, Petronas needs to fill the vaccum," said the source.

In 2008, MISC, via its unit MSE Holdings Sdn Bhd, aborted a proposed RM3.2 billion reverse takeover THHE, "due to unsatisfactory due diligence findings".

Meanwhile, Business Times was told by a person familiar with the inner workings of the THHE board of directors that there could be changes soon in the company's directors line-up.

"The potential new investors in THHE have asked for board representation in the company as they intend to help it become the country's top fabrication firm," said the source.

Late last year, McDermott International Inc of the US formalised a joint venture to provide a broad spectrum of marine construction services to the Malaysian and Asia Pacific- offshore oil and gas industries.

The agreement could see a 30 per cent share swap between Berlian McDermott Sdn Bhd, the local arm of McDermott International, and TH Fabricators Sdn Bhd in a deal worth US$25.4 million (RM77 million).

The agreement also includes the formation of two local companies offering engineering, procurement and project management services, in which McDermott and THHE will have equal ownership.

The deal, however, will have to be approved by THHE investors at an extraordinary shareholders meeting, which is expected to take place as early as next month.

Since the upliftment of its Practice Note 17 status three months ago, THHE and its partners have bagged a job worth US$289.46 million (RM877 million) from India's state-owned Oil and Natural Gas Corp Ltd.

It is estimated that THHE currently has an order book of RM200 million, while jobs it has tendered for stand at between RM1.2 billion and RM1.4 billion.