KUALA LUMPUR (Nov 6): Deleum Bhd (KL:DELEUM) is acquiring an additional 16% equity in Turboservices Sdn Bhd from Solar Turbines International Co (STICO) for RM7.34 million, raising its stake to 90%.

The cash acquisition of shares in the turbomachinery outfit, funded internally, follows a willing-buyer willing-seller negotiation based on Turboservices net tangible assets.

At the end of the last financial year ended Dec 31, 2023 (FY2023), Turboservices had net assets of RM52.29 million, before adjusted for RM6.4 million in dividend paid out. FY2023 profit after tax rose 148.93% to RM25.64 million, from RM10.3 million. Revenue rose 29.23% to RM522.94 million from RM404.66 million.

Upon completion of the deal expected on Dec 15, the increased ownership will streamline management control and improve Deleum's profit share, while maintaining STICO's 10% holding, the company said.

In 1HFY2024, Deleum's net profit rose 67.71% to RM31.62 million from RM18.86 million. Revenue rose 24.3% to RM387.82 million, from RM311.52 million.

Shares of Deleum traded unchanged at RM1.46 at noon market break, giving it a market capitalisation of RM586.27 million.