JES International Holdings Limited announces that, the Group, through its wholly-owned subsidiary Jiangsu Eastern Heavy Industries Co., Ltd, has signed a letter of intent to construct up to 4 Offshore Accommodation Vessels (“OAVs”) valued at approximately USD147 million each, said in the company's press release.
This letter of intent is signed with the buyer from a Singapore-based offshore company. The eventual arrangement with the buyer is likely to be in the form of an order contract for 1 OAV and 3 options of 1 OAV each. The Group expects to s ign the formal agreements with the buyer before May 2013 pending finalisation of certa in details of the terms. The OSVs, a DPII type, are equipped with offshore construction capab ilities and is expected to be capable of accommodating about 400 to 500 crews and staffs.
The agreements are not expected to have a material i mpact on the net tangible assets and earnings per share of the Company for the year endi ng 31 December 2013.