Hong Kong-listed bulker owner Asia Energy Logistics (AEL) has announced that the board has decided to liquidate wholly owned subsidiary Ocean Jade Investment.
Ocean Jade is a ship investment unit of AEL, and has a 50% shareholding in a joint venture with Waibert Navigation, a subsidiary of China’s GNG Ocean Shipping. The joint venture owns two 35,000 dwt handysize bulkers, Hai Bao and Hai Kang.
According to AEL, the joint venture planned to acquire a total of four vessels but it didn’t acquire the remaining two vessels due to the continuing poor shipping market conditions, and the company’s share of accumulated losses of the joint venture had exceeded its investment by the end of 2019.
AEL believes the liquidation of Ocean Jade is in the best interests of the company and its shareholders as the subsidiary no longer serves as a viable business opportunity with profitable prospects for the company.
AEL expects that it will record a gain of approximately HK$169m ($21.8m) from the deconsolidation of Ocean Jade from the group.
VesselsValue data shows AEL currently owns a fleet of three handy bulkers.