Further to the announcement dated 18 July 2015, the Company wishes to announce that its indirect wholly-owned subsidiary, Manis Shipping Pte Ltd (“Manis Shipping”) (held via MBC’s wholly-owned subsidiary, New Johnson Holdings Limited) has engaged Semco Salvage & Towage Pte Ltd (“Semco Salvage & Towage”) to carry out salvage work on its vessel, m.v. Alam Manis which grounded off Coast of Candon Ilocos Sur, Philippines.
In addition, when the vessel first listed, Manis Shipping had also chartered the Salviscount, a salvage tug, from POSH Terasea Offshore Pte Ltd (“POSH Terasea Offshore”) to render assistance and escort the vessel towards San Fernando in north Luzon, being the nearest port of refuge.
As Semco Salvage & Towage and POSH Terasea Offshore are a subsidiary and associate company of PACC Offshore Services Holdings Limited ("POSH") respectively, the transactions are related party transactions as POSH is a subsidiary of Kuok (Singapore) Limited ("KSL") and KSL, through its wholly-owned subsidiary, Pacific Carriers Limited, is a major shareholder of MBC.
The consideration for the transactions is as follows:
- charter cost of about USD76,760 payable for Salviscount; and
- as the salvage work is on-going, the final salvage cost will only be known after the vessel is recovered and delivered back to owners.
Save for deductibles as provided in the policies, both the aforementioned charter and salvage cost are covered by insurance.
The above transactions will not have a material effect on the earnings per share, net assets and gearing of MBC Group for the financial year ending 31 December 2015. Neither does it have any effect on the share capital and substantial shareholders’ shareholdings in MBC Group. No approval of the shareholders of MBC or any regulatory authority is required.
The following directors are deemed interested in the transactions as follows:
(a) Mr Kuok Khoon Kuan is a director of MBC, Manis Shipping and KSL. His direct/ indirect interest in MBC, KSL and POSH are 0.13%, 3.47% and 0.25% respectively
(b) Mr Wu Long Peng is a director of MBC, KSL, and POSH. His direct/ indirect interest in MBC, KSL and POSH are 0.16%, 0.47% and 0.46% respectively
Save as disclosed above, none of the other directors or major shareholders of MBC or persons connected with them has any interest, direct or indirect, in the transactions.
The Audit Committee and the Board of Directors, have reviewed the terms of the transactions, and are of the view that the transactions are:
(i) in the best interests of the MBC Group;
(ii) fair, reasonable and on normal commercial terms; and
(iii) not detrimental to the interest of the minority shareholders of MBC.
Copy of the relevant documents are available for inspection at the registered office of MBC during normal office hours from Monday to Friday (except public holidays) at Level 17 & 18, PJ Tower, No. 18 Jalan Persiaran Barat, Off Jalan Timur, 46050 Petaling Jaya, Selangor Darul Ehsan for a period of three (3) months from the date of this announcement.
This announcement is dated 14 August 2015.