Vallianz to acquire Batam shipyard facility
Tuesday, September 23 2014 - 01:14 AM WIB
Singapore?s Vallianz Holdings Limited, a fast growing provider of offshore support vessels and integrated marine solutions to the oil and gas industry, said that its wholly-owned subsidiary Vallianz Shipbuilding & Engineering Pte. Ltd. (VSE) has entered into a conditional sales and purchase agreement (SPA) to acquire a shipyard facility in Batam, Indonesia for S$19.8 million to establish its own marine base.
Vallianz explained in a statement Monday that pursuant to the SPA, VSE will acquire the entire share capital of Singapore-incorporated Jetlee Shipbuilding & Engineering Pte Ltd (Jetlee) and its 99 percent owned Indonesian entity PT United Sindo Perkasa (PTUSP), which owns a fabrication and engineering shipyard located at Kabil, Nongsa, Batam City, Riau Islands Province (marine base).
The marine base occupies a land area of about 8.8 hectares with a water front of about 390 meters in length, the statement said.
It further said that the consideration shall be satisfied by the issue of approximately 143.3 million ordinary shares in the capital of Vallianz at an issue price per consideration share of S$0.138. The issue price represents a significant premium of 24 percent to Vallianz's volume weighted average price of S$0.1116 per share on September 19, 2014. The consideration was arrived at on a willing seller and willing buyer basis after taking into account existing assets, valuation of the marine base and financial position of Jetlee Group.
Chief Executive Officer of Vallianz, Darren Yeo said, "With direct ownership in a shipyard facility, Vallianz will have its own marine base to dock and carry out maintenance operations for our vessels and third-party vessels that are managed by the group. As we continue with our fleet expansion program, we expect to reap greater cost savings and operating efficiencies from having our own marine base as compared to leasing third-party shipyards."
Yeo added, "The shareholders of Jetlee are industry veterans with decades of experience in the marine sector. They will be allotted new shares in Vallianz that are priced at S$0.138 per share, which is a significant premium to the current share price. This clearly underscores their confidence in the group's business and growth prospects."
Editing by Reiner Simanjuntak