04/07/2025

BIZ & FINANCE FRIDAY | JULY 4, 2025

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GFM Services acquires 60% of Shapadu Energy

M’sian firms bag RM450m potential digital exports to Indonesia PETALING JAYA: Malaysia Digital Economy Corporation (MDEC) continues to drive the nation’s digital economy across Asean, strengthening regional cooperation and market access for Malaysian companies. The agency’s latest initiative under the DEX CONNEX Indonesia programme brought 83 Malaysian tech companies into the Indonesian market, which generated more than RM450 million in digital export opportunities. DEX CONNEX Indonesia is a key regional initiative that facilitated the exchange of 26 MoUs between Malaysian and Indonesian firms. These agreements span sectors such as cybersecurity, AI, cloud services, F&B, digital platforms, and talent development, aimed at creating a robust and collaborative digital ecosystem across Asean, primarily as Malaysia serves as Asean Chair that champions innovation as a driver of regional growth and resilience. MDEC CEO Anuar Fariz Fadzil called Indonesia a key partner in Malaysia’s digital goals. “Through DEX CONNEX, Malaysia is focusing on cross-border collaborations to continue building a resilient digital bridge between two thriving ecosystems. “With a strong tech ecosystem and Asean unity, both nations are shaping an inclusive, sustainable digital future for all,” he added. This initiative is supported by the Embassy of Malaysia in Jakarta, the Ministry of Investment, Trade and Industry Malaysia, Matrade Jakarta, the Ministry of Communication and Digital Affairs of Indonesia, and partners from both nations.

expertise to drive growth and enhance operational performance,” Ruslan added. The strategic value of the acquisition is further supported by the robust financial performance of Shapadu Energy’s subsidiary SCRA, which holds the TA4MS contract. Over the past three years, SCRA demonstrated consistent revenue growth from RM37.2 million in the financial year ended Dec 31, 2021 (FY21) to RM114.7 million in FY24, representing a 45% compound annual growth rate). Net profit also more than tripled from RM2.5 million in FY21 to RM8.8 million in FY24. This growth trajectory is expected to contribute positively to the group’s profitability post-acquisition. Upon completion of the acquisition, GFM will hold a 60% equity interest in Shapadu Energy, while the remaining 40% will be retained by Shapadu Corporation. Consequently, Shapadu Energy will become a 60%-owned subsidiary of GFM and will remain an independently managed business unit under the group. GFM has also entered into a conditional Call Option Agreement, granting Shapadu Corporation the right to purchase a 15%-equity interest in Shapadu Energy for RM10 million. This option is exercisable within 24 months from the completion of the acquisition. The RM30 million acquisition will be satisfied entirely in cash. The acquisition is expected to be completed by the second half of 2025.

Through its subsidiary Shapadu CR Asia Sdn Bhd, it holds the TA4MS contract from Pengerang Refining Company Sdn Bhd and Pengerang Petrochemical Company Sdn Bhd—joint venture companies formed between Saudi Aramco and Petronas. The contract involves providing a plant turnaround services to Pengerang Refining and Pengerang Petrochemical at the Pengerang Refinery and Petrochemical Complex within the Pengerang Integrated Complex (PIC) in Johor as needed. This complements GFM’s own O&G arm via Highbase Strategic Sdn Bhd, which also holds a TA4MS contract from Petronas. The acquisition builds upon GFM’s acquisition of Highbase in December 2023, which marked the group’s entry into the O&G facilities maintenance (FM) sector. With both Highbase and Shapadu Energy operating under TA4MS contracts, the enlarged group will be well-positioned to grow its presence and participate more competitively in larger, more complex projects at the PIC. “The combined capabilities of both entities are expected to unlock synergies across the enlarged group. These include increased market presence via strategic collaboration, as well as shared use of manpower and equipment, which may lead to cost rationalisation, improved operational efficiency, and stronger overall financial performance. “We are confident that Shapadu Energy’s skilled management team will strengthen our O&G segment, leveraging their industry

KUALA LUMPUR: Integrated facilities management (IFM) services provider GFM Services Bhd signed a conditional share sale agreement with Shapadu Corporation Sdn Bhd to acquire a 60% equity interest in Shapadu Energy Sdn Bhd for RM30 million. The acquisition follows the signing of the heads of agreement by both parties in December 2024. GFM Services group managing director Ruslan Nordin said this acquisition is a strategic step forward in scaling up the company’s O&G FM capabilities and scope. “It represents a key milestone in the group’s long-term strategy to strengthen and expand our presence in this high-value segment. “By acquiring Shapadu Energy, we will gain access to an established customer base, resources, and expertise, particularly at the PIC under the Integrated Turnaround Main Mechanical & Maintenance Mechanical Static (TA4MS) contract,” he said in a statement. Shapadu Energy is involved in the oil & gas (O&G) downstream maintenance and turnaround services, as well as upstream maintenance, hook-up and commissioning activities. o RM30m deal to enhance company’s capabilities in O&G facilities management

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