INTRODUCTION
The Board of Directors of Sealink International Berhad ("SEALINK" or "the Company") is pleased to announce that SEALINK Group has secured contracts for the sale of three offshore support vessels for a total consideration of approximately RM70 million.
DETAILS OF THE CONTRACTS
Sealink Resources (L) Ltd, Sealink Shipyard Sdn Bhd and Godrimaju Sdn Bhd had secured contracts for the sale of three (3) offshore support vessels for a total consideration of approximately RM70 million and these vessels are expected to be delivered within the first quarter of 2011.
Of the three vessels sold, two of the vessels amounting to RM68 million are to established overseas buyers whilst the other 14 year old vessel was sold as part of SEALINK’s fleet modernization plan.
Sealink Resources (L) Ltd, Sealink Shipyard Sdn Bhd and Godrimaju Sdn Bhd are all wholly owned subsidiaries of SEALINK.
FINANCIAL EFFECTS
The contracts, valued at approximately RM70 million are expected to contribute positively to the earnings and net assets of SEALINK for the financial year ending 31 December 2010 and beyond. Notwithstanding this, the above contracts 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 contracts.
DIRECTORS' STATEMENT
The Board of Directors of SEALINK is of the opinion that the acceptance of the contracts is in the best interest of the Company.
This announcement is dated 29 December 2010.
ABOUT SEALINK GROUP
SEALINK Group 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 operator 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 has the capacity to construct up to 17 vessels a year .