Hoe Leong acquires 51% stake in four vessels

Mainboard-listed Hoe Leong Corpn’s foray into vessel chartering services has received a new boost.

The company has inked a sale and purchase agreement to acquire a 51 percent stake in Aries

Offshore Singapore, for an aggregate consideration of US$15.1 million, locking in the acquisition at a price-to-book value of 0.95x. The remaining 49% stake in Aries Offshore is held by a subsidiary of mainboard-listed Otto Marine.

With the addition of Aries Offshore’s four anchor handling tug supply vessels, Hoe Leong’s total operating fleet will be boosted to 18.

The newly acquired vessels have existing bareboat charter contracts, and Otto Marine will step in as the bareboat charterer for these vessels should any of the contracts expire or be terminated within three years from the completion date of the acquisition, effectively providing a guarantee against contractual uncertainties.
(Source:www.cargonewsasia.com)