Announcements

Date : 17 October 2011

OTHERS CENTURY LOGISTICS HOLDINGS BERHAD (“CENTURY”) -ACQUISITION OF M.T. QASEH, A 7,119 DWT OIL PRODUCTS TANKER FOR A TOTAL CASH CONSIDERATION OF USD4.75 MILLION (APPROXIMATELY RM15 MILLION) ("ACQUISITION")

CENTURY LOGISTICS HOLDINGS BERHAD

TypeAnnouncement
SubjectOTHERS
DescriptionCENTURY LOGISTICS HOLDINGS BERHAD (“CENTURY”)
-ACQUISITION OF M.T. QASEH, A 7,119 DWT OIL PRODUCTS TANKER FOR A TOTAL CASH CONSIDERATION OF USD4.75 MILLION (APPROXIMATELY RM15 MILLION) ("ACQUISITION")
1. INTRODUCTION
    The Board of Directors of Century is pleased to announce that its 51% subsidiary, Century Onsys Sdn Bhd ("Century Onsys") had on 17 October 2011 acquired M.T. Qaseh, a 7,119 Dead Weight Tonnes (“DWT”) oil products tanker (“the Vessel") for a total cash consideration of USD4.75 million (approximately RM15 million). The Vessel was acquired from Pengkalan Megaria Sdn Bhd (“Seller”), a 100% subsidiary of Export-Import Bank of Malaysia Berhad.
2. DETAILS OF THE ACQUISITION

    2.1 Information on M.T. Qaseh

      Further information on the Vessel is as follows:



      Classification Society/ Class : Bureau Veritas / Double hull
      Tank Capacity (98%) : 8,047 CBM (excluding slop)
      Built : Zhejiang, China in 2008
      Flag / Port of Registry : Panama
    2.2 Basis of the Purchase Price

      The purchase price for the Vessel which is estimated to be below the prevailing market price for similar vessels, was arrived on 'willing buyer-willing seller' basis and 'as-is-where-is' basis, taking into consideration the physical condition of the Vessel and intention of the Seller for its prompt disposal. There will not be any liabilities to be assumed arising from the Acquisition. A valuation of the Vessel will be conducted for refinancing purposes, if required.
        The purchase consideration for the Acquisition was satisfied via cash from internally generated funds. However, Century Onsys may refinance the Acquisition if the financing terms are favourable.
    3. RATIONALE

      The Acquisition will enable Century to expand further downstream in its oil and gas logistics activities. Century is confident that together with the expertise of Onsys Energy Sdn Bhd, the other shareholder in Century Onsys, it is able to expand further its logistics services to marine transport. The Vessel will be reflagged to Malaysia and is expected to ply the oil transport market within Malaysian waters.

    4. FINANCIAL EFFECTS

      The Acquisition will not have any effect on the issued and paid-up share capital and major shareholders shareholdings of Century as the Acquisition will be satisfied entirely in cash.

      The Acquisition will not have any material impact on the NTA of the Century Group but is expected to contribute positively to future earnings.


    5. APPROVALS REQUIRED

      The Acquisition does not require the approval of Century’s shareholders or any relevant government authorities. The highest percentage ratio applicable to the Acquisition is 4.4%.

    6. DIRECTORS' AND MAJOR SHAREHOLDERS' INTEREST

      Save for the respective interests in Century Onsys, none of the directors, major shareholders of Century or persons connected with them have any interest, direct or indirect, in the Acquisition.
      7. DIRECTORS' RECOMMENDATION

        The Board of Directors of the Company, after having carefully considered all aspects of the Acquisition, are of the opinion that the terms and conditions of the Acquisition are fair and reasonable and is in the best interests of Century and its shareholders.
        This announcement is dated 17 October 2011.


        Announcement Info

        Company NameCENTURY LOGISTICS HOLDINGS BERHAD  
        Stock Name CENTURY    
        Date Announced17 Oct 2011  
        CategoryGeneral Announcement
        Reference NoCS-111017-CBEEF

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