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Acquisition Of Vessel

BackAug 27, 2010
Date Announced
:
27/08/2010  




Type
:
Announcement
Subject
:
Acquisition of Vessel

Contents
:
INTRODUCTION
The Board of Directors of Dayang Enterprise Holdings Bhd ("the Company" or "Dayang") is pleased to announce that DESB Marine Services Sdn Bhd ("DMSSB"), a wholly-owned subsidiary of the Company, has entered into a Shipbuilding Contract ("the Contract") with Shin Yang Shipyard Sdn Bhd, a company incorporated in Malaysia under the Companies Act, 1965 ("the Builder") on 27 August 2010 for the construction and delivery of one unit offshore accommodation workboat ("Vessel") by the Builder to DMSSB at a purchase price of RM63,740,500.00.

COMPLETION OF THE ACQUISITION
The acquisition is expected to be completed upon delivery of the vessel. The new vessel is scheduled to be delivered by end of year 2011.

APPROVAL REQUIRED
The acquisition is not conditional upon any approvals being obtained from any authorities.

RATIONALE
The acquisition is in line with the fleet expansion plan of Dayang Group's core business in providing marine support services to the offshore oil and gas facilities.

FINANCIAL EFFECTS

The payment of this acquisition is funded by internally generated funds and bank borrowings. This new vessel is expected to contribute positively to the future earnings and net assets of the company for the financial year ending 31 December 2012 and beyond. Notwithstanding this, the acquisition of the vessel is not expected to have any material effect on the share capital and shareholding structure of the company.

DIRECTORS AND MAJOR SHAREHOLDERS INTEREST
None of the Directors or major shareholders or persons connected to the Directors or major shareholders has any direct or indirect interest in the acquisition.

DIRECTORS STATEMENT
The Board of Directors of Dayang is of the opinion that the acquisition of the vessel is in the best interest of the company.


This announcement is dated 27 August 2010.