Singapore-based services provider Core IRM is to be bought by Australian engineering services company Neptune Marine, for S$13 million (US$9 million), after signing a letter of intent with the outfit.

It should be noted that inspection, repair and maintenance (IRM) services are provided by the Singapore outfit to the oil and gas, plus petrochemical industries.

Since 1995, core IRM has been maintaining operations in the Asia Pacific region, while delivering services across an array of disciplines, including subsea, survey, inspection, non-destructive testing, engineering and fabrication.

The whole of the issued share capital of Core IRM is being mulled to be bought by Neptune for S$13 million, with the added consideration of S$1 million conditional payment that will be based on Core IRM's earnings performance for the 12 month period to 31 December 2009. Ninety percent of the deal will be funded by the way of equity funds raised through share placement. These were announced on 5 June. The remaining 10% will be funded via an issue of Neptune's ordinary shares to the vendors.

Neptune's managing director Christian Lange said in a statement: "Core IRM's reputable experience, track record and presence in the Asia Pacific region will provide us with the opportunity to leverage off our well established operations in Singapore and Indonesia and drive the migration of Neptune's proven integrated services model into Asia."