T7 Global Berhad, an engineering services firm based in Malaysia, announced that its subsidiary Tanjung Offshore Services entered into a share sale agreement with Fircroft Engineering Services for the acquisition of the remaining 49% stake of Fircroft Tanjung Sdn. Bhd.

Fircroft Tanjung is a 51.0% owned subsidiary of Tanjung Offshore since 1 August 2014. The latest agreement will be for a cash purchase consideration of 49% of Fircroft Tanjung’s net assets as of 31 January 2021.

Upon completion of the proposed acquisition, Fircroft Tanjung’s will become a wholly-owned subsidiary of Tanjung Offshore.

Fircroft Tanjung was a joint venture company between Tanjung Offshore and Fircroft Engineering Services which started on 1 August 2014. It had since provided over thousands of contractor professionals to the Malaysian oil and gas and petrochemical industry.

The proposed acquisition will enable Tanjung Offshore to fully control the business and operations of Fircroft Tanjung as well as its future business direction. In addition, it is the intention of the group to continue to expand the manpower business of Fircroft Tanjung to include other industries such as aerospace, construction and technology sector.

Fircroft Tanjung has been consistently generating profits for the group for the past three years up to FY 2019. However, its business was slightly affected in FY 2020 due to the Covid-19 pandemic.

The management of T7 said it has initiated turnaround plans for Fircroft Tanjung to ensure its profitability moving forward.

The proposed acquisition of the remaining stake is expected to be completed in the second quarter of 2021.