INTEGRATED marine logistics company Marco Polo Marine announced on Monday that it will acquire a majority stake in Indonesian shipping agency company PT Pelayaran Nasional Bina Buana Raya (PT BBR) to strengthen its position in the Indonesian market.

Pending shareholder approval, Marco Polo Marine will raise its shareholding to up to 72 per cent from its current 34.8 per cent through a rights issue. PT BBR will transition from an associate company to a key subsidiary of Marco Polo Marine, and serve as a growth platform to expand its Indonesia operations, the group said.

Its indirect wholly-owned subsidiary, PT Marco Polo Indonesia (PT MPI), will provide an undertaking to PT BBR, subject to a maximum aggregate subscription amount of US$17 million, to fully subscribe for all its rights entitlements under the rights issue and any excess rights entitlements arising from the renouncement by two other substantial shareholders and remaining public shareholders.

The group said that the downturn in the offshore oil and gas sector appears to be bottoming out, and PT MPI, through PT BBR, will be able to meet the sector's needs and boost the group's core ship chartering business.

Following debt restructuring in 2020, PT BBR has restarted with a clean slate and will not have an adverse or material impact on Marco Polo Marine's balance sheet, it added.

To quickly execute the undertaking to participate in the rights issue, Marco Polo Marine - with the support of major shareholders holding a combined 51.21 per cent of voting rights - sought and obtained a waiver from the Singapore Exchange which allowed it to participate in the rights issue without first convening an extraordinary general meeting of shareholders to approve the proposed transaction.

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Shares of Marco Polo Marine closed 10 per cent higher at 2.2 Singapore cents on Monday, after the announcement.