PETALING JAYA: Marine & General Bhd
(MGB) is acquiring a vessel, JM Sutera 9, from Muhibbah Engineering (M) Bhd for RM55.19mil.
In a filing with Bursa Malaysia, MGB said the vessel is a clean petroleum product tanker built in Malaysia in 2022 with an expected lifespan of 25 years.
It is currently being chartered by MGB’s wholly owned subsidiary, wholly-owned subsidiary, M&G Tankers Sdn Bhd, under a bareboat charter.
“The purchase consideration was arrived at on a “willing buyer willing seller basis”, after taking into account the original selling price for the vessel of RM65mil in 2022, its current age of approximately three years and earnings potential of the vessel.”
MGB said it intends to use up to RM25mil of its internally generated fund for the acquisition, whilst the balance will be funded via bank borrowing.
“The acquisition of JMS9 is an acquisition in the ordinary course of business and part of the downstream division’s vessel optimisation strategy and is expected to enhance its ability to compete in the downstream marine logistics business.
“Following the disposal of three older vessels in the past one year and upon completion of the acquisition, the average age of MGB’s downstream division chemical and oil tankers will reduce from 12 years to 9.7 years.”
