Nam Cheong to invest over $39m in Indonesian shipping firm

It will subscribe up to 1.6b new shares in the company.

Nam Cheong today revealed that it is going to invest over $39m (US$30.7m) in PT Pelayaran Nasional Bina Buana Raya Tbk, an Indonesian ship owning and chartering company that is an indirect subsidiary of Marco Polo Marine.

This is the second initiative undertaken by Nam Cheong to further extend its interests in the Indonesian oil and gas market, following the forming of a joint venture in Indonesia in September 2013 to own, operate and charter marine vessels.

Nam Cheong has agreed to subscribe up to 1.6 billion new shares in BBR’s rights issue, at an issue price of IDR 230 per share, which was determined on a “willing-buyer, willing-seller basis”.

Upon the completion of the rights issue, the Group may hold up to approximately 30% of the enlarged share capital of BBR, for a total consideration of approximately US$30.7 million.