AsiaDry CargoOffshore

Maybulk to offload stake in POSH

Malaysian Bulk Carriers (Maybulk), controlled by tycoon Robert Kuok, has proposed to dispose of its entire 21.23% stake in loss-making Singapore-listed PACC Offshore Services Holdings (POSH) to shareholders of Maybulk. The stake is currently held by the company’s subsdiary Lightwell Shipping.

Maybulk said the proposed disposal will enable the group to focus on its core business activity in the dry bulk sector.

Assuming that all the offer shares are fully taken up by the entitled shareholders based on an indicative offer price, the estimated gain to Maybulk from the proposed disposal is RM337.2m ($87m).

Out of that amount, RM157.9m will be used for the operating expenses of 11 vessels and charter hire payments, RM107m to repay borrowings, and RM64m to part finance the construction costs of three new bulk carriers. The remaining RM11.1m will be used for expenses of the proposed disposal.

The deal is expected to be completed by the second half of 2018.

“Going forward, there is a need to rationalise the fleet profile to reduce vessels that are older, having declining appeal and competitiveness relative to more economical, environmentally friendly and modern vessels that MBC Group must compete against. There has therefore been a recent move to sell the partially owned vessels that are older and less competitive,” the company said in a release.

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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