Perdana Petroleum Sells Offshore Support Vessel to Hauston for $28.5M

Malaysia's Perdana Petroleum Berhad (PPB or the Company) reported Wednesday that its wholly-owned subsidiary Perdana Neptune Ltd. had Oct. 28 entered into a Memorandum of Agreement (MoA)  to dispose of one unit of offshore support vessel (the Vessel) to Hauston Limited, a company incorporated in the British Virgin islands (the Buyer) for total consideration $28.5 million or approximately MYR 93.5 million (Sale Consideration). The Sale Consideration was arrived at on a willing buyer willing seller basis after taking into consideration the net book value of the Vessel as at Oct. 31 of MYR 92.0 million and the original cost of investment of MYR108.0 million (the Disposal).

The salient terms of the MoA are:

  • a deposit of $1.0 million shall be made, of which the first half of the deposit shall be made within 14 days of execution of the MoA (First Installment) and the second half of the deposit shall be made on receipt by the Buyer of the firm notification for delivery and not later than 90 days after the payment of the First Installment
  • the balance of $27.5 million shall be paid within 5 banking days before the scheduled closing meeting and in any case not later than 1 banking days after the Vessel is physically ready for delivery

The expected time of delivery of the Vessel to the Buyer is before the end November. The Disposal is part of the fleet renewal program. The Company had earlier announced the acquisition of additional two units of 500-men Accommodation Work Barges

The gain on the Disposal is approximately MYR 1.0 million and the proceeds will be channeled to the PPB Group to meet its operating expenses, repayment of bank borrowings and funding new acquisition of assets.

The Disposal does not have any effect on the issued and paid-up share capital of PPB or the shareholdings of PPB’s substantial shareholders and is not expected to have any material effect on the earnings, net assets as well as gearing of PPB Group for the financial year ending Dec. 31.

None of the Directors, major shareholders or persons connected with them is interested, directly or indirectly, in the Disposal.

The Disposal does not require the approval of PPB shareholders.


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