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INTRODUCTION
The Board of Directors of Sealink International Berhad ("SEALINK" or "the Company") is pleased to announce that on the 27 December 2010, Sea Legend Shipping Sdn Bhd, a wholly owned subsidiary of SEALINK, has entered into a shareholders’ agreement to subscribe 250,000 shares representing 25% equity interest in Logistine Sdn Bhd (“Logistine”) for a total cash consideration of RM2 million (“Proposed Investment”).
DETAILS OF THE PROPOSED INVESTMENT
Logistine is a limited company incorporated in Malaysia on 30 March 2010 and the authorized share capital and issued and paid up share capital of Logistine will be RM1,000,000 after the Proposed Investment. Logistine had been awarded two (2) long term contracts for the charter of two (2) offshore support vessels for periods till 21 October 2014 and 24 Oct 2014 respectively, with options for renewal for another three years. The total contract value for the two (2) charter contracts(excluding options for renewal) are approximately RM89 million.
The shareholders in Logistine are Inno Senada Sdn Bhd, Rejoice Matrix Sdn Bhd and Sea Legend Shipping Sdn Bhd, holding 50%, 25% and 25% respectively.
RATIONALE FOR THE PROPOSED INVESTMENT
Logistine was incorporated to undertake the provision of providing services to the oil and gas industry. The Proposed Investment provides an opportunity for Sealink Group to immediately expand its chartering and shipbuilding business.
CONDITION FOR THE PROPOSED INVESTMENT
The Proposed Investment is subject to the SEALINK’s satisfactory due diligence review of the long term contracts secured by Logistine.
EXPECTED TIMEFRAME FOR COMPLETION
Barring unforeseen circumstances, the Proposed Investment shall be completed before the end of 2010.
SOURCE OF FUNDS
Sealink’s cost of investment of RM2 million shall be funded by internally generated funds.
FINANCIAL EFFECTS
The Proposed Investment is expected to contribute positively to the earnings and net assets of SEALINK for the financial year ending 31 December 2011 and beyond. Notwithstanding this, the above are not expected to have any material effects on the share capital and shareholding structure of the Company.
DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS
None of the Directors or major shareholders or persons connected to the Directors or major shareholders has any direct or indirect interest in the Proposed Investment.
DIRECTORS' STATEMENT
The Board of Directors of SEALINK, having considered all factors is of the opinion that the Proposed Investment is in the best interest of the Company.
This announcement is dated [27 December 2010.]
ABOUT THE COMPANY
SEALINK is an Integrated Service Provider which builds, owns and operates a diverse fleet of offshore marine support vessels, serving mainly the global offshore oil and gas exploration and production industry. Being one of the largest tug and barge operators in Malaysia for the oil and gas industry, it is now strengthening its position to be the major provider for offshore marine support vessels for other niche areas in the industry.
It has a young fleet of offshore marine support vessels predominantly focused on and used in the offshore oil & gas industry. With its diverse fleet of 36 vessels, it can cater to a wide base of reputable clients in the various segments of the industry.
Presently, SEALINK owns two shipyards located in Miri, Sarawak. The two shipyards have the capacity to construct up to 17 vessels a year |
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