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|
|Description||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")
2.1 Information on M.T. Qaseh
Further information on the Vessel is as follows:
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 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.
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.
|Company Name||CENTURY LOGISTICS HOLDINGS BERHAD|
|Date Announced||17 Oct 2011|