Nam Cheong to jointly invest in an Indonesian shipping firm BNI

Will help grow recurring income stream.

The Board of Directors of Nam Cheong Limited (Nam Cheong) has announced that its whollyowned subsidiary, Nam Cheong Pioneer Sdn Bhd (NCP) has entered into a Cooperation Agreement with PT Bahtera Niaga Internasional (BNI), a company duly incorporated and validity existing under the laws of Republic of Indonesia and Ms Nelly, an Indonesian citizen (Nelly) to jointly invest in a shipping company in Indonesia.

Pursuant to the Co-operation Agreement, NCP will acquire 49% of the equity stake in PT Bahtera Niaga Indonesia (the “JV Co”) from BNI for the purchase consideration of US$1.5 million. The consideration was arrived at on a ‘willing-buyer willing-seller’ basis, taking into account of the business prospect of the JV Co and the net tangible asset of the JV Co of US$2.3 million as at 31 August 2013, and will be satisfied in cash through internal resources.

As an integrated offshore player, the JV Co is strategically positioned to seize opportunities presented in the Indonesian market. In line with the Group’s corporate strategy to strengthen its position as one of the leading global offshore marine players, the Group is bringing to the joint venture its 20-year track record in building and delivering quality offshore support vessels. In addition, the joint venture will help to enhance the Group’s vessel chartering operations and grow its recurring income stream through the utilisation of BNI’s ship management and crew expertise.

The Directors of the Company believe the joint venture is in line with the Company’s intention to grow our presence in the Indonesian market.

The above investment is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the Company for the current financial year ending 31 December 2013.