Kim Heng's subsidiary to purchase nine vessels
The Board of Directors of Kim Heng Ltd. and its subsidiaries (collectively the “Group”) wishes to announce that Ruhm Mazu Sdn Bhd, a 49% owned indirect subsidiary of the Company, has entered into various memorandum of agreements in relation to the purchase of nine vessels for a total consideration of approximately US$9.28 million, the Company said in a media release.
The nine vessels consist of one 400 pax accommodation barge, one special service offshore support vessel, four anchor handling tug supply vessels and three offshore support vessels (the “Vessels”).
The Acquisition will further reiterate the Group’s strategy in prudent acquisition of Vessels cheaply to enable the Group to refurbish them at the Group’s two shipyards and on-sell to customers for profits and/or to charter out to generate charter revenue. Refurbishment of Vessels in our own shipyards enables the Group to maximize the utilization of the two shipyards.
With the Acquisition, the Group will be able to position and meet the growing demands from the marine and offshore and the renewables sector. The Consideration will be funded by a combination of internal resources and bank borrowings.
The vessel sales and newbuild and chartering and towage are the main businesses of the Group. With a very strong resource base, the Group will be able to draw from a wealth of expertise throughout the organization and develop a comprehensive range of service capabilities. The Group owns and operates a wide range of quality offshore fleet of vessels and cranes for both sale and rent, including crawler cranes, lorry cranes and mobile cranes to support all kinds of marine offshore services and windfarm facilities installation.