The move follows on from another joint venture Nam Cheong formed in Indonesia a year go to own, operate and charter vessels.
Under the HOA, Nam Cheong has agreed to subscribe up to 1.6bn new shares in BBR’s rights issue, at an issue price of IDR 230 per share, which will give Nam Cheong roughly 30% of the enlarged share capital of BBR for $30.7m.
Leong Seng Keat, Nam Cheong’s ceo said, “It is our plan to develop strategic partnerships with regional players to strengthen our position in cabotage-protected countries. Investing in BBR provides us with the platform to gain a foothold in the cabotage-protected Indonesia market given BBR’s extensive network and strong presence in the country.”
BBR will utilise part of the proceeds to purchase five small- and mid-sized OSVs from Nam Cheong.
Sean Lee, ceo of Marco Polo Marine, commented, “To meet the emergent market demand as bigger rigs are used and with enhanced exploration and production activities in deeper waters within Indonesia, it is envisaged that different types and sizes of OSVs may have to be added to complement our existing fleet. With Nam Cheong as our fellow significant shareholder in BBR, this allows us to leverage on Nam Cheong as an additional reputable and experienced source of vessel acquisitions with the added alignment of interest in terms of pricing and opportune timing.” [29/09/14]