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Asia Energy Logistics to liquidate vessel investment unit

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.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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