(Bloomberg) -- Ekuiti Nasional Bhd. is exploring options for its stake in Malaysian oil tanker operator Orkim Sdn., including a potential sale, according to people familiar with the matter.
Malaysian state-owned private equity firm, also known as Ekuinas, is working with advisers to divest Orkim in a deal that could the business at as much as 1 billion ringgit ($243 million), the people said. An initial public offering in Kuala Lumpur is also an option for Orkim, said the people, asking not to be named as the information is private.
Ekuinas owns 95.5% of Orkim and has invested 346.3 million ringgit into the company since its acquisition in 2014, according to its website. Discussions are still at an early stage and may not necessarily result in a deal, said the people.
A representative at Ekuinas said in a response to Bloomberg that the firm doesn’t comment on speculation of its investment or divestment activities and will issue official announcements of any new developments. A representative for Orkim said the company doesn’t comment on speculations regarding its shareholders’ activities.
Ekuinas had in 2017 agreed to sell Orkim to UMW Oil and Gas Corp. for 473 million ringgit, but the plan was abandoned as declines in oil prices made the deal unattractive. Oil prices dropped to a low of $26 a barrel in early 2016 and have since recovered, trading above $50 a barrel.
Ekuinas is seeking a higher valuation for Orkim as the company has shown improvement in earnings as crude oil price recovers, one of the people said.
Orkim, which started as a ship broker in 2004, became a ship owner later after it took delivery of its first vessel in 2009 and started serving Royal Dutch Shell Plc. in Malaysia and Petroliam Nasional Bhd, its website shows. It has 17 vessels with a total tonnage of 107,000 deadweight tons as of 2016, according to its website.
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