News

INTRODUCTION

The Board of Directors of Sealink International Berhad ("SEALINK" or "the Company") wishes to announce an entity within the SEALINK Group has commenced Arbitration against Boustead Penang Shipyard Sdn Bhd  (“BPS”). The Notice of Arbitration was sent by Rajah & Tann LLP.

DETAILS AND RATIONALE OF THE ARBITRATION

Sealink has written to the Kuala Lumpur Regional Centre for Arbitration to request for Arbitration with BPS in relation to disputes between a wholly owned subsidiary, Sealink Sdn Bhd (“SSB”) and BPS under a Ship Building Contract dated 3 April 2008 (“contract”).

SSB and BPS entered into a ship building contract on 3 April 2008 to build two (2) units of 7,000 dwt oil carriers / chemical carriers.

SSB claims against BPS, inter alia, the sum of USD4,935,000 which is to be refunded and/or paid to SSB by BPS under the Contract and/or for interest payable by BPS to SSB under the terms of the Contact  and/or for losses  and/or expenses incurred by SSB pursuant to BPS breaches of the Contract. 

FINANCIAL EFFECTS

Sealink Group may impair up to RM1.3 million for equipment deposits and interest capitalised todate, in the financial quarter ended 31 December, 2012 for the contract under dispute as the solicitors are confident of the results of the  arbitration  and the recovery of the disputed sum thereof.  Notwithstanding this, the above are not expected to have any effect on the share capital and shareholding structure of the Company.

DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

Toh Kian Sing, a Director of SEALINK is deemed interested in the arbitration since he is a partner of Rajah & Tann LLP.  Other than Toh Kian Sing, none of the Directors or major shareholders or persons connected to the Directors or major shareholders has any direct or indirect interest in the arbitration.

DIRECTORS' STATEMENT

The Board of Directors of SEALINK, having considered all factors is of the opinion that the arbitration is in the best interest of the Company.

ABOUT THE COMPANY

SEALINK Group is an Integrated Service Provider which build, sell, own and operate 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, we are now strengthening our position to be the major provider for offshore marine support vessels for other niche areas in the industry.

We have a young fleet of offshore marine support vessels predominantly focused on and used in the offshore oil & gas industry. With its diverse fleet of 40 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.

This announcement is dated 31st December 2012.