Disposal of Entire Interest in Joint Venture Company, Bohai Sembawang Shipyard (Tianjin)
The Board of Directors of SembCorp Marine Ltd (“SembCorp Marine”) wishes to announce that its subsidiary, Sembawang Shipyard (S) Pte Ltd has disposed of its entire 50 per cent share of the registered capital in Bohai Sembawang Shipyard (Tianjin) Co Ltd (“Bohai Sembawang Shipyard”) to its joint venture partner, China Offshore Oil Bohai Corporation.
The sale consideration was S$25.3 million and was determined based on the prevailing net tangible asset value. The payment would be in the form of cash and a mutually agreed fixed asset item. The gain from this divestment is S$1.9 million.
Located in Tanggu, Tianjin in the People’s Republic of China, Bohai Sembawang Shipyard’s principal activities include ship repairs and basic conversions. The divestment of Bohai Sembawang Shipyard is due to the joint venture partner’s internal restructuring. In line with SembCorp Marine’s hub strategy in China, this divestment would also allow SembCorp Marine to restructure its investment in China and to enhance its participation with COSCO in the growing ship repair market in China.
Following this disposal, Bohai Sembawang Shipyard ceased to be a joint-venture company of SembCorp Marine. The above transaction is not expected to have a significant impact on the earnings per share and the net tangible assets per share of SembCorp Marine for the financial year ending December 31, 2003.
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