ASL Marine Holdings Ltd. (the Company) announced Monday that the Company and its wholly-owned subsidiary, PT. Sukses Shipyard Indonesia (the Purchaser), have entered into a conditional sale and purchase agreement dated Jan. 24 (the Agreement) with Miclyn Express Offshore Limited (MEO) and its wholly-owned subsidiary, PT Loh & Loh Construction Indonesia (the Vendor), pursuant to which the Purchaser has agreed to acquire the property and fixed assets in respect of a shipyard (the Sale Assets) from the Vendor, for the cash consideration of $20.0 million (equivalent to approximately SGD 25.6 million based on the exchange rate of $1: SGD 1.279) (the Acquisition).
Information on Sale Assets
The shipyard operates on the land located at Jalan Brigjen Katamso Km. 19 Tanjung Uncang Batam, Indonesia (the Property), being adjacent to the Group’s existing shipyard in Batam. It is situated in a free trade zone with industrial areas designated specifically for shipyards with infrastructure such as roads, telecommunications, utilities and supporting services.
The Sale Assets comprise a site of 30.15 acres (12.2 hectares) with berthing/repair quays of 721.79 feet (220 meters), 2 shiprepair slip/launch-ways and shipyard facilities (office building, fabrication shop, and machineries) which cater for shipbuilding, vessels repair, modification and mobilization, as well as modular fabrication services.
The Purchaser commissioned KJPP, Sarwono, Indrastuti & Rekan (KJPP), a property valuer, to evaluate the “market value” of the Sale Assets, being the “estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion”.
According to its valuation report dated Jan. 15 (the Valuation Report), and using the “value based market data approach and cost approach”, KJPP is of the opinion that the market value of the Sale Assets as at Dec. 20, 2013 is IDR 310.6 billion (equivalent to approximately $25.80 million or SGD 33.0 million based on the exchange rate of SGD 1: IDR 9,426).
Information on Vendor
MEO is headquartered in Singapore and is a leading provider of offshore vessel services. It operates a range of offshore support vessels, crew/utility vessels, tugs and barges for customers in the offshore oil and gas industry across South-East Asia, Australia and the Middle East.
The Vendor is a wholly owned company of MEO which holds the Sale Assets. MEO had previously used the shipyard to build, convert and customize vessels as well as service its South East Asian based fleet and other third party vessels when spare capacity existed. MEO has undertaken to dispose the Sale Assets in order to focus on its core vessel chartering business.
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