Kuala Lumpur: KPMG Corporate Advisory has recommended that shareholders of Malaysian Bulk Carriers (Maybulk) to give the nod to the company’s proposal to subscribe for shares in the listing of its 21.23%-owned PACC Offshore Services Holdings (POSH).
Maybulk announced this week that it planned to acquire an associate stake of 20% in Singapore-based OSV operator POSH by spending up to $70m to buy shares under the latter’s IPO, which is expected later this month. The deal requires approval from shareholders. Maybulk has called for an Extraordinary General Meeting on April 17.
KPMG, as the independent adviser appointed by Maybulk for the transaction, said in a letter to shareholders that the plan was “fair and reasonable” and not detrimental to the non-interested shareholders.
“The POSH group’s fleet, comprising young and powerful anchor handling tug supply, platform supply and semi-submersible accommodation vessels, coupled with proven a track record in servicing large oil majors and contractors, is well positioned to meet the market’s requirements for OSVs and accommodation vessels to service the deepwater environment in the growth regions of the ‘deepwater triangle’ of the United States, Gulf of Mexico, Brazil and West Africa, in addition to the major reserves growth regions in Australasia, East Africa and the Eastern Mediterranean,” KPMG said, added that POSH’s earnings had served as a buffer against the sluggish dry bulk market. [03/04/14]