The Board of Directors of Sealink International Berhad (800981-X) ("SEALINK" or "the Company") is pleased to announce that SEALINK Group has secured contracts for the sale of two offshore support vessels for a total consideration of approximately RM87 million.
DETAILS OF THE CONTRACTS
Sealink Marine (L) Ltd (Company No. LL06874) and Sealink Engineering and Slipway Sdn Bhd (Company No. 653820-H had secured contracts for the sale of two (2) offshore support vessels for a total consideration of approximately RM87 million and these vessels are expected to be delivered by the 3rd Quarter of 2011.
One of the vessels amounting to RM55 million was sold to an established overseas buyer whilst the other vessel was sold to Logistine Sdn Bhd (Company No. 896190-T), an associate company of Sealink Group. The sale of the vessel to Logistine Sdn Bhd is made through a finance lease arrangement and Logistine is provided with an option to purchase the vessel at any time during the lease period of 6 years. Logistine Sdn Bhd had secured a long term charter for this vessel to be delivered.
Sealink Marine (L) Ltd and Sealink Engineering and Slipway Sdn Bhd are all wholly owned subsidiaries of SEALINK.
RATIONALE FOR THE PROPOSED SALE
The above sales are part of the normal operations of SEALINK Group operations as a ship builder and ship owner.
CONDITION FOR THE SALE
The sale of an offshore support vessel amounting of approximately RM55 million is subject to the approval from the members in an Extraordinary General Meeting to be convened, as the vessel is currently included as part of the property, plant and equipment of SEALINK Group. The vessel has yet to be completed and is expected to be completed by 3rd Quarter of 2011.
A circular to the shareholders and a notice of an Extra General Meeting shall be issued in due course.
EXPECTED TIMEFRAME FOR COMPLETION
Barring unforeseen circumstances, the sale shall be completed by the 3rd Quarter of 2011.
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. 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 11 May 2011.
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.
With the sale of the above two vessels, SEALINK has sold all of the larger vessels currently under construction and SEALINK Group is currently embarking on a new shipbuilding program of approximately USD100 million in view of the renewed vigor in the oil and gas industry.
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