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SINGAPORE: Electronics manufacturing services provider, Tri-M Technologies, is acquiring Kingworld Resources for S$203 million to develop and produce crude oil in China.
The deal will be funded by S$23 million in cash and the rest in shares. Tri-M could issue new shares, debt or undertake bank borrowings.
The company said it plans to develop Kingworld's oil field resource in Jilin province in China.
The vendors, Tiong Hiew King and Tiong Kiu King, are relations of Tiong Ik King, the firm's executive director. This makes the deal one between interested parties.
Tri-M said the deal would help improve its financial condition and add to shareholder value.
According to the International Energy Agency (IEA), China is the world's second-largest oil consumer after the United States. Chinese oil consumption is expected to grow 5.6 per cent this year and 5.7 per cent next year.
IEA also expects oil prices to remain high despite their recent drop.
Tri-M said it intends to explore opportunities to acquire other relevant resources in the oil and gas sector within or outside China after the deal is done.
- CNA/so
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