Scomi Group Bhd (KLSE:SCOMI) made a formal proposal to acquire the remaining 34.4% stake in Scomi Energy Services Bhd (KLSE:SCOMIES) from Kaspadu Sdn Bhd, Scomi Energy Sdn Bhd, Onstream Marine Sdn Bhd, Rentak Rimbun Sdn Bhd, Shah Hakim Shahzanim bin Zain and others for approximately MYR 100 million on August 21, 2017. Under the terms of transaction, for every 5 Scomi Energy Services Bhd shares held, 3 new consolidated shares of Scomi Group Bhd will be issued and 1 warrant for every 9 Scomi Energy Services Bhd's shares will be issued as consideration at an offer price of MYR 0.126 per share. All the shareholders holding less than 100 shares will be paid the entire price in cash. As of November 7, 2017, all the shareholders holding less than 100 shares will also be issued shares and warrants as consideration.

The transaction is subject to approval by Securities Commission Malaysia, approval of Bursa Securities for admission and listing of the warrants to the official list of Bursa Securities, approval of the shareholders of Scomi Group Bhd and Scomi Energy Services Bhd, approval by High Court of Malaya and approval, waiver and/or consent of any other relevant authorities. As on September 15, 2017, Bursa Securities has approved the waiver to seek Scomi Group Bhd shareholders' approval for issuance of consideration shares to Director, major shareholders or Chief Executive of Scomi Group Bhd. On October 10, 2017, The Board of Directors of Scomi Energy Services Bhd agreed to present the scheme to shareholders for approval at the meeting of shareholders. On November 14, 2017, it was announced that the high court granted Scomi Energy to convene a court convened meeting within 120 days from the date of the order with the shareholders of the company to approve the transaction. The transaction is expected to be completed by the first quarter of 2018. The proceeds to be raised as and when the warrants are exercised shall be utilized for the future working capital requirements of Scomi Group Bhd and its subsidiaries. The proposed share consolidation will not have any effect on the earnings of Scomi Group Bhd for the financial year ending March 31, 2018. Extraordinary General Meeting of Scomi Group Bhd will be held on January 4, 2018 and Scomi Energy Services Bhd will be delisted in the end February 2018

Astramina Advisory Sdn Bhd, CIMB, Hong Leong Investment Bank Berhad and Wong Wing Seong, Pam Lee and Hasanuddin Bin Amiruddin of BDO Capital Consultants Sdn Bhd acted as financial advisors to Scomi Group Bhd. MIDF Amanah Investment Bank Berhad and Astramina Advisory Sdn Bhd acted as financial advisors to Scomi Energy Services Bhd. KPMG PLT acted as accountant to Scomi Energy Services Bhd. BDO Capital Consultants Sdn Bhd acted as independent financial advisor to non-interested Directors of Scomi Energy Services Bhd. KPMG PLT acted as accountant and Symphony Share Registrars Sdn Bhd acted as registrar to Scomi Group Bhd. CIMB acted as banker to Scomi Group Bhd. Kadir Andri & Partners acted as legal advisor to both Scomi Group Bhd. and Scomi Group Bhd.

Scomi Group Bhd (KLSE:SCOMI) cancelled the acquisition of remaining 34.4% stake in Scomi Energy Services Bhd (KLSE:SCOMIES) from Kaspadu Sdn Bhd, Scomi Energy Sdn Bhd, Onstream Marine Sdn Bhd, Rentak Rimbun Sdn Bhd, Shah Hakim Shahzanim bin Zain and others on January 4, 2017. As on January 4, 2018, Scomi Energy Services Bhd convened meeting of shareholders and approval was not obtained. As such Scomi Group Bhd will not proceed with the implementation of the Proposed Merger of Scomi Energy Services Bhd. The termination of the transaction is not expected to have any material impact on the consolidated EPS and NA per share of Scomi for the year ending on March 31, 2018.