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Tuesday, September 30, 2014

Nam Cheong to take 30% stake in Indonesian shipping company for US$30.7mil


KUALA LUMPUR: Singapore-listed Nam Cheong Ltd will invest US$30.7mil to acquire about 30% of the enlarged share capital of Indonesian shipping company, PT Pelayaran Nasional Bina Buana Raya Tbk (BBR).
Nam Cheong, which has its headquarters in Kuala Lumpur, is Malaysia's largest offshore support vessel (OSV) builder, while BBR is an indirect subsidiary of Marco Polo Marine Ltd (MPML).
In a statement today, the group said it had entered into a binding Heads of Agreement with MPML to subscribe 1.6 million new shares in the BBR rights issue at an issue price of 230 rupiah a share and to be funded through internal resources.
BBR will utilise part of the proceeds to purchase five small and mid-sized OSVs, which are appropriate for plying Indonesian waters from Nam Cheong for US$85.0 million, it added.
Nam Cheong said this was the second significant initiative undertaken by it to further extend its interests in the Indonesian oil-and-gas market. The move comes after a joint venture in Indonesia in September 2013 to own, operate and charter marine vessels.
Nam Cheong's CEO Leong Seng Keat said investing in BBR would provide the company with the platform to gain a foothold in the cabotage-protected Indonesia market, given BBR's extensive network and strong presence in the country.
He said the investment had not only increased the company's vessel sales but also laid the groundwork for potential future vessel purchases by BBR from the group.
"With this solid working relationship in place, we believe it will strengthen our position in vessel chartering in Indonesia by further enhancing our presence in this vibrant market," Leong added.
The vessel chartering business segment remains a small, yet important, and fast growing part of Nam Cheong's operations.
With 15 vessels for chartering to date, Nam Cheong said it is in a strong position to tap the increasing regional vessel chartering opportunities. – Bernama 

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