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:
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.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles
From the Career Center
Jobs that may interest you