KUALA LUMPUR (July 8): Enra Group Bhd has proposed to acquire four properties and selected assets such as plant, equipment, inventories and machinery from MTU Services (Malaysia) Sdn Bhd for RM60 million.

Enra, which has inked a non-binding indicative offer for the assets, said RM33 million of the consideration will be satisfied in cash, while the remainder will be satisfied via the issuance of 27 million new Enra shares at RM1 per share.

Enra will lease the said assets back to MTU Services for up to nine years at RM3.3 million per annum or 18% of MTU Services's annual revenue, whichever is higher, on a triple net rental basis.

In a statement, Enra said it has also proposed to collaborate with MTU Services to grow ENRA’s existing maintenance, repair and overhaul (MRO) business under Enra Energy Solutions Sdn Bhd, a wholly-owned subsidiary of Enra.

MTU Services is principally involved in MRO services primarily for the marine, automotive, defence and power industries.

Enra, which is also in MRO services besides property development and investment, and specialty chemicals and floating storage and offloading solutions for the oil and gas industry, also plans to collaborate with MTU Services to explore new opportunities in MRO services for various industries.

"Enra is confident that its partnership with MTU Services will help both Enra Energy Solutions and MTU Services to provide a unique selling proposition to prospective customers and thereby expand their presence in the MRO sector across various industries," Enra said.

Enra shares closed 7.5 sen or 8.67% lower at 79 sen today, valuing the group at RM106.59 million.

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