Shares of Asian Energy Services Ltd plummeted 13% on 8 September after the Board of Directors of the company approved a scheme of merger with Oilmax Energy Pvt Ltd to solidify its industry position. 

In an exchange filing on Saturday, 6 September, the firm said that its board of directors had authorised a draft merger proposal to absorb its holding company, Oilmax Energy Pvt Ltd. The scheme was approved at a board meeting after being reviewed by the audit and independent directors committees, according to the business. 

The merger plan is subject to approval by the National Company Law Tribunal (NCLT), other regulatory bodies, shareholders, and creditors. The transaction is classified as a related party transaction and is being carried out on an arm’s length basis. Bansi S. Mehta Valuers LLP valued the consideration, and Sundae Capital Advisors Pvt Ltd provided a fairness assessment.

Asian Energy Services and Oilmax Energy both work in the energy and minerals industries, mostly in oil and gas. The company stated that the combination will combine complementary characteristics, consolidate assets, improve technological and operational capabilities, and considerably increase its industry position in terms of geographic reach and financial capability.

The merger is projected to establish a major energy and minerals firm in India with a global footprint, while also creating value to shareholders, employees, and customers, the company stated.

The organisation is a top provider of integrated services throughout the upstream oil and gas value chain. It provides 2D and 3D seismic data acquisition, onshore and offshore production facility operations and maintenance, production enhancement solutions, and mining services such as material handling plant and rapid loading system supply and installation.

At 2:30 pm, the shares of Asian Energy were trading 10.27% lower at Rs 346.35 on NSE. 

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