Vallianz Holdings Limited, a fast growing provider of offshore support vessels and in tegrated marine solutions to the oil and gas industry, today announced that its wholly-owned subsidiary Vallianz Shipbuilding & Engineering Pte. Ltd. has entered into a conditional sales and purchase agreement to acquire a shipyard facility in Batam, Indonesia for S$19.8 million to establish its own marine base, the company said in its press release.
Pursuant to the SPA, VSE will acquire the entire share capital of Singapore-incorporated Jetlee Shipbuilding & Engineering Pte Ltd and its 99% owned Indonesian entity PT United Sindo Perkasa. PTUSP owns a fabrication and engineering shipyard located at Kabil, Nongsa, Batam City, Kepulauan Riau Province, Indonesia. The Marine Base occupies a land area of about 8 .8 hectares with a water front of about 390 metres in length. The Consideration shall be satisfied by the issue o f approximately 143.3 million ordinary shares in th e capital of Vallianz at an issue price per Consideration Share of S$0 .138 . The Issue Price represents a significant premiu m of 24% to Vallianz’s volume weighted average price of S$0.1116 per share on 19 September 2014. The Consideration was arrived at on a willing seller and willing buyer basis afte r taking into account existing assets, valuation of the Marine Base and financial position of Jetlee Group.
Chief Executive Officer of Vallianz, Mr Darren Yeo said , “With direct ownership in a shipyard facility, Vallianz will have its own marine base to dock and carry out maintenance operations for our vessels and third-party vessels that are managed by the Group. As we continue with our fleet expansion program, we expect to reap greater cost s avings and operating efficiencies from having our own marine base as compared to leasing third-party shipyards.” Mr Yeo added, “The shareholders of Jetlee are indus try veterans with decades of experience in the marine sector. They will be allotted new shares in Vallianz that are priced at S$0.138 per share, whic h is a significant premium to the current share price . This clearly underscores their confidence in the Group’s business and growth prospects.”