ASL Marine Holdings to acquire Batam shipyard for $20 million

Helps expand shipbuilding, ship repair capabilities.

The Board of Directors of ASL Marine Holdings Ltd. announced that the company and its wholly-owned subsidiary, PT. Sukses Shipyard Indonesia, have entered into a conditional sale and purchase agreement with Miclyn Express Offshore Limited (MEO) and its wholly-owned subsidiary, PT Loh & Loh Construction Indonesia, to acquire the property and fixed assets in respect of a shipyard in Batam for a $20.0 million cash consideration.

The shipyard operates on the land located at Jalan Brigjen Katamso Km. 19 Tanjung Uncang Batam, Indonesia, being adjacent to the Group’s existing shipyard in Batam. It is situated in a free trade zone with industrial areas designated specifically for shipyards with infrastructure such as roads, telecommunications, utilities and supporting services.

The Sale Assets comprise a site of 12.2 hectares with berthing / repair quays of 220 metres, 2 shiprepair slip / launch-ways and shipyard facilities (office building, fabrication shop, and machineries) which cater for shipbuilding, vessels repair, modification and mobilisation, as well as modular fabrication services.

ASL Marine commissioned KJPP, Sarwono, Indrastuti & Rekan (KJPP), a property valuer, to evaluate the “market value” of the sale assets, being the “estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion”.

According to its valuation report dated 15 January 2014, and using the “value based market data approach and cost approach”, KJPP is of the opinion that the market value of the sale assets as at 20 December 2013 is Rp310.6 billion (equivalent to approximately S$33.0 million based on the exchange rate of S$1: Rp9,426).

In explaining the rationale for the acquisition, ASL Marine said that it "is in line with the overall strategy of the Group to strengthen and expand its shipbuilding and ship repair capability and capacity."

"In view of the water-front land and the close proximity of the Sale Assets to the Group’s existing premise in Batam, the proposed Acquisition will provide a good opportunity for the Group to expand its capacity and berthing space to support the growing demand for ship repair and upgrading of ships and other floating structures from the marine and offshore sector."

"The additional shipyard will also supplement the revenue stream of the Group, as well as strengthen its ability to serve customers in the South Asia region."

ASL Marine and its subsidiaries are engaged in the business of ship building, ship repair and conversion, ship-chartering, engineering and provision of other marine related services. It also caters to customers which are mainly from Asia Pacific, South Asia, Europe, Australia and the Middle East. The Group currently owns and operates four (4) shipyards which are located in Singapore, Indonesia (Batam) and the People’s Republic of
China (Guangdong).