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OTHERS MARINE & GENERAL BERHAD (M&G) - DISPOSAL OF VESSEL BY M&G TANKERS SDN. BHD., AN INDIRECT WHOLLY OWNED SUBSIDIARY OF M&G

MARINE & GENERAL BERHAD

Type Announcement
Subject OTHERS
Description
MARINE & GENERAL BERHAD (M&G)
- DISPOSAL OF VESSEL BY M&G TANKERS SDN. BHD., AN INDIRECT WHOLLY OWNED SUBSIDIARY OF M&G

INTRODUCTION

 

The Board of Directors ("Board") of Marine & General Berhad ("M&G" or "the Company") wishes to announce that a wholly owned subsidiary of M&G namely, M&G Tankers Sdn. Bhd. (“M&G”) had on 26 March 2024 disposed its vessel, JM Sutera 5 for a total cash consideration of USD5.55 million (equivalent to approximately RM26.21 million) to Kalianda Permata Transport Pte. Ltd., Singapore (“the Disposal”).

 

MGT was duly incorporated on 26 June 2018. MGT has a paid-up share capital valued at RM70,022,710 and is principally engaged in the provision of marine logistics services.

 

DETAILS OF THE DISPOSAL

 

The disposal involved the sale of a vessel namely, JM Sutera 5 for a total cash consideration of USD5.55 million (equivalent to approximately RM26.21 million) to an external party, Kalianda Permata Transport Pte. Ltd., Singapore, on a willing buyer and willing seller basis.

 

The cost of investment for JM Sutera 5 was USD5.42 million with the net carrying value recorded at USD4.36 million as at 26 March 2024.

 

The disposal price of JM Sutera 5 of USD5.55 million arrived at a willing buyer-willing seller basis based on net proceeds of USD5.46 million plus the estimated disposal costs of USD91,000 comprising mainly the brokerage, legal and escrow agent fees. The vessel was last valued in January 2023 at USD4.2 million. 

 

RATIONAL FOR THE DISPOSAL

 

The net disposal proceeds will provide part of the financing required for M&G’s fleet optimisation strategy. M&G intends to reinvest in new chemical tankers to renew its vessel fleet. Actual decision on the reinvestment will be dependent on market demand and charterer requirements.

 

FINANCIAL IMPACT OF THE DISPOSAL

 

The Disposal will not have any effect on the issued and paid-up capital and shareholdings of the substantial shareholders of M&G. Gain on disposal of the vessel amounting to approximately USD1.09 million (equivalent to approximately RM5.15 million) will contribute positively to the Group earnings, net assets and gearing of the Group.

 

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST

 

None of the directors or major shareholders or person connected to the directors or major shareholders has any interest, direct or indirect in the Disposal.

 

APPROVAL REQUIRED

 

The Disposal, being of a revenue nature and transacted in the ordinary course of business, is not subject to shareholders or regulatory bodies’ approval.

 

This announcement is dated 26 March 2024.

 






Announcement Info

Company Name MARINE & GENERAL BERHAD
Stock Name M&G
Date Announced 26 Mar 2024
Category General Announcement for PLC
Reference Number GA1-26032024-00052



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