Vallianz Shipbuilding & Engineering (VSE) has entered into a conditional sales and purchase agreement to acquire a shipyard facility in Batam, Indonesia for S$19.8 million, Singapore-based Vallianz Holdings Limited said.
Chief Executive Officer of Vallianz, Mr Darren Yeo said:“ With direct ownership in a shipyard facility, Vallianz will have its own marine base to dock and carry out maintenance operations for our vessels and third-party vessels that are managed by the Group. As we continue with our fleet expansion program, we expect to reap greater cost savings and operating efficiencies from having our own marine base as compared to leasing third-party shipyards.”
Under the deal, VSE will acquire the entire share capital of Singapore-incorporated Jetlee Shipbuilding & Engineering Pte Ltd and its 99% owned Indonesian entity PT United Sindo Perkasa.
PTUSP owns a fabrication and engineering shipyard located at Kabil, Nongsa, Batam City, Kepulauan Riau Province, Indonesia. The Marine Base occupies a land area of about 8.8 hectares with a water front of about 390 metres in length.
Mr Yeo added: “ The shareholders of Jetlee are industry veterans with decades of experience in the marine sector. They will be allotted new shares in Vallianz that are priced at S$0.138 per share, which is a significant premium to the current share price. This clearly underscores their confidence in the Group’s business and growth prospects.”