News

INTRODUCTION

The Board of Directors of Sealink International Berhad (Company No. 800981-X) ("SEALINK" or "the Company") is pleased to announce that on the 22^nd  February 2013, Sea Legend Shipping Sdn Bhd (Company No.703278-W) (“Sea Legend”), a wholly owned subsidiary of SEALINK, has entered into a shareholders’ agreement to purchase 50% equity interest in Mitra Angkasa Sdn Bhd (Company No. 974404-T) (“Mitra Angkasa”) (“Proposed Investment”).

DETAILS OF THE PROPOSED INVESTMENT

Mitra Angkasa is a limited company incorporated in Malaysia on 09 January 2012 and the authorized share capital and issued and paid up share capital of Mitra Angkasa is RM100,000.  Mitra Angkasa had been awarded a long term contract for the charter of an offshore support vessel for the period from 01 September 2012 to 24 October 2014, with options for renewal for another three years. The total contract value for the charter contract (excluding options for renewal) are approximately RM11 million.

The current shareholder of Mitra Angkasa is Malaysian Engineering and Oilfield Services Sdn Bhd (Company No. 476682-A (“MEOS”).

Mitra Angkasa has also entered into a contract to purchase an offshore supply vessel from SEALINK for a sum of RM15,800,000.  This vessel will be used to replace the vessel currently chartered from SEALINK for the contract.

Upon satisfactory completion of the due diligence, Sea Legend shall purchase 50,000 ordinary shares representing 50% equity interest in Mitra Angkasa Sdn Bhd (“Mitra Angkasa”) for a total cash consideration of RM50,000 (“Proposed Initial Investment”). 

In addition to the Proposed Initial Investment, Sea Legend and MEOS shall subscribe for 450,001 and 449,999 ordinary shares of RM1 each at par, for a cash consideration of RM450,001 and RM449,999 respectively in Mitra Angkasa.  Sea Legend and MEOS are also required to subscribe up to Three Million Five Hundred Thousand (RM3,500,000) redeemable preference shares at par, at an interest rate of 9.1% per annum in Mitra Angkasa  in proportion to their respective shareholdings.

RATIONALE FOR THE PROPOSED INVESTMENT

Mitra Angkasa was incorporated to undertake the provision of providing services to the oil and gas industry.  The Proposed Investment provides an opportunity for SEALINK to immediately expand its chartering and shipbuilding business.

CONDITIONS FOR THE PROPOSED INVESTMENT

The Proposed Investment is subject to the SEALINK’s satisfactory due diligence review of Mitra Angkasa and the long term contracts secured by Mitra Angkasa.

Upon satisfactory completion of the due diligence, Sea Legend shall purchase and subscribe for the ordinary shares and preference shares respectively in Mitra Angkasa.

EXPECTED TIMEFRAME FOR COMPLETION

Barring unforeseen circumstances, the Proposed Investment shall be completed before the second quarter of 2013.

SOURCE OF FUNDS

SEALINK’s total expected cost of investment of RM2,250,000 shall be funded by internally generated funds.

FINANCIAL EFFECTS

The Proposed Investment secured are expected to contribute positively to the earnings and net assets of SEALINK for the financial year ending 31 December 2013 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 are in the best interest of the Company.
This announcement is dated 22^nd February 2013

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 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.