With reference to the announcement of 12 December 2012 on the transaction relating to the procurement of the right to use 30 hectares of land in Batam, Indonesia, the transaction which was proposed and entered into by its subsidiary, PT BH Marine & Offshore Engineering, could not be completed because the relevant authority in Batam had already allocated the land to another party, said in a press release.
Both the Batam land transaction and the various potential irregular transactions may result in a potential loss of between S$8 million to S$10 million for the subsidiary, which constitutes approximately 8% to 10% of the company’s net asset value.