Scomi Marine to dispose of 4 companies to PT. Rig Tenders Indonesia for RM538.3m

KUALA LUMPUR: SCOMI MARINE BHD []’s unit has proposed to dispose of four marine logistics companies to its subsidiary PT. Rig Tenders Indonesia Tbk (PTRT) for 323.1 billion rupiah (RM538.3 million) in a group-related corporate exercise.

Under the corporate exercise announced on Friday, Dec 17, Scomi Marine’s unit Scomi Marine Services Pte Ltd would dispose of four companies to PTRT. PTRT is a 80.54%-owned subsidiary of Scomi Marine Services.

The four companies which it was disposing of its entire equity interest were CH Logistics Pte Ltd, CH Ship Management Pte Ltd, Grundtvig Marine Pte Ltd and Goldship Private Ltd to PTRT. The marine logistics companies own and operate 51 vessels, comprising 27 tugs and 24 flat top barges.

Under the exercise, PTRT proposes to undertake a renounceable rights issue to partly fund the Disposal Consideration whereby Scomi Marine Services will undertake to renounce all of its entitlement to Portside Offshore Inc. and PT Revessel Indonesia.

“The business environment for the marine logistics and offshore support vessel businesses in Indonesia is increasingly challenging in light of changes to local regulations relating to ownership, intensifying competition and pressures on charter rates.

“In addition, significant capital expenditure outlay is expected to be incurred to replace vessels and to invest in new business opportunities,” said Scomi Marine.

Scomi Marine said a strategic investor is essential in growing the businesses, both from a financial and operational perspective.

Scomi Marine said given the specialised nature of the businesses and the unique ownership criteria required, the Board feels that Portside and PT Revessel Indonesia would be in a better position to expand the business activities of the enlarged PTRT.

It added that it would continue to participate in the businesses’ upside potential through its equity interest in PTRT upon completion of the proposals. (Joseph Chin, theedgemalaysia.com)