(KUALA LUMPUR, June 6) Sources familiar with the matter revealed that Malaysia International Shipping (MISC, 3816, Main Board Transportation and Logistics) is in talks with Bumi Armada (ARMADA, 5210, Main Board Energy) to acquire the latter's shares and become its major shareholder.

Financial weekly TheEdge quoted sources as reporting that negotiations for Malaysia International Shipping to acquire Bumi Armada have been ongoing, but there has been no breakthrough yet.

In response to a reporter's inquiry, MISC also said: "The company is actively exploring any investment opportunities that can add value to its shareholders. If there is substantial progress, the company will communicate with relevant stakeholders."

It is understood that the above negotiations were conducted at the shareholder level and did not involve management, so the reporter did not seek advice from Bumi Armada.

The largest shareholder of Bumi Armada is Malaysian tycoon Ananda, who currently holds a 34.58% stake in the company.

Is India's Tata also a competitor?

It is believed that Ananda had the idea of ​​quitting several years ago, and Shapoorji Pallonji Mistry of India's Tata Group also seemed interested in taking over. The latter served as a member of Bumi Armada's board of directors from October 2014 to February 2017.

However, there has been no follow-up action since then.

Malaysia International Shipping is a subsidiary of Petronas (holding 51% of the shares) and is mainly responsible for Petronas' transportation-related matters.

Bumi Armada is one of the world's largest floating production storage and offloading (FSPO) operators, with total assets of approximately RM11.59 billion as of the end of March this year.