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BackJun 14, 2013
Type Announcement
Subject OTHERS
Description SALE OF INDUSTRIAL LAND AND BUILDING
INTRODUCTION

The Board of Directors of Sealink International Berhad ("SEALINK") is pleased to announce that a wholly owned subsidiary, Sealink Sdn Bhd (Company No. 20471-D) (“the Vendor”) had entered into a Sale and Purchase Agreement (“SPA”) with Desa Metro Sdn Bhd (Company No 310903-U) (“the Purchaser”) dated 14th June, 2013 for the sale of an industrial land together with a double storey detached industrial building (“the Property”) for a total cash consideration of RM6,600,000 (“the Sale Consideration).

DETAILS OF THE SPA

1. Information on the Property
    All that parcel of land together with a double storey detached industrial building thereon and appurtenances thereof situate at Piasau Road, Miri containing 4,244 square metres, more or less, and described as Lot 1359 Block 3 Miri Concession Land District. The Land has a lease tenure expiring 20 December 2047.

    The Property was acquired on 30 August 1988 for RM999,029. The Property is currently being rented out to a third party. The carrying value of the Property, together with additional cost incurred on the Property, as at 31 May 2013 was RM1,820,114.

2. The salient terms of the SPA are as follows:
    (a) The Property shall be disposed on a “as is where is” basis, subject to the Tenancy and the sale is subject to written consent being obtained by the Vendor from the Director of Lands and Surveys for the proposed transfer of the Property to the Purchaser.


    (b) The total cash consideration of RM6,600,000 shall be or has been paid at the times and in the manner as follows:

    (i) upon execution of the SPA, a sum of RM660,000 was paid as deposit cum part payment of the Sale Consideration to the solicitors appointed by the parties as the Stakeholder (“the Solicitors”);
     
    (ii) the balance sum of RM5,940,000 shall be paid by the Purchaser to the Solicitors within three (3) months from the written notification from the said solicitors of the written consent being obtained for the proposed transfer of the Property from the Director of Lands and Surveys, or the earlier release of the any bank loan as may be applied for by the Purchaser after securing the written consent; and

    (iii) the Purchaser shall, at any time after the payment of 10% of the Sale Consideration as stipulated in Clause 15 of the SPA, be allowed at the Purchaser’s own cost and expense to present and register a private caveat against the Property.

BASIS OF ARRIVING AT THE SALE CONSIDERATION

The Sale Consideration for the Property of RM6,600,000 was arrived at on a willing-buyer willing-seller basis, negotiated between the Vendor and the Purchaser and after taking into consideration the carrying value of the Property of RM1,820,114 based on the management financial statements of the Vendor as at 31 May 2013 and the market value of RM5,000,000 for the Property based on the valuation done on 26 April 2013 by JS Valuers Property Consultants (Sarawak) Sdn Bhd (580996-H).

DETAILS OF PURCHASER

Desa Metro Sdn Bhd (Company No 310903-U) (“the Purchaser”) was incorporated in Malaysia under the Companies Act, 1965 as a private limited company on 8 August 1994. The principal activity of the Purchaser is property Investment.

LIABILITIES TO BE ASSUMED

The Purchaser is not expected to assume any liabilities apart from the Sale Consideration pursuant to the SPA.

UTILISATION OF PROCEEDS

The net proceeds after deducting the estimated expenses and other ancillary expenses relating to the SPA (estimated at approximately RM6,557,941), will be used for working capital purposes.

RISK IN RELATION TO THE SPA

The SPA is subject to the terms and conditions contained therein. There is no assurance that the SPA would not be terminated, whether in accordance with the terms and conditions of the SPA or otherwise.

RATIONALE FOR THE SALE

The above sale was made as the land and building is currently not utilized by the SEALINK Group and had been rented out for the last twenty four (24) years.

EXPECTED TIMEFRAME FOR COMPLETION

Barring unforeseen circumstances, the sale shall be completed by the 3rd Quarter of 2013.

FINANCIAL EFFECTS

The sales are expected to contribute positively to the earnings and net assets of SEALINK Group for the financial year ending 31 December 2013. SEALINK Group is expected to recognize a gain on disposal of RM4,737,827 from the sale of the aforesaid Property. 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 contract.

DIRECTORS' STATEMENT

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

This announcement is dated 14th day of June 2013.

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 41 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.

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.

Announcement Info

Company Name SEALINK INTERNATIONAL BERHAD  
Stock Name SEALINK    
Date Announced 14 Jun 2013  
Category General Announcement
Reference No CS-130614-5E0AA