Nam Cheong Invests in Shipping Firm in Indonesia
Nam Cheong Limited has entered into a Cooperation Agreement with PT Bahtera Niaga Internasional (“BNI”) from Indonesia, and a certain Ms Nelly, an Indonesian citizen, to jointly invest in a shipping company in Indonesia.
According to the agreement, Nam Cheong will acquire 49% of the equity stake in PT Bahtera Niaga Indonesia (the “JV Co”) from BNI for the purchase consideration of US$1.5 million.
The purpose and objectives of this Joint Venture company is the owning, operating and chartering of marine vessels for transportation, exploration and production activities in the oil and gas industry and to manage the maintenance of marine vessel and provision of offshore marine service and all other related businesses and activities.
Explaining the move, Nam Cheong said it thought that as an integrated offshore player, the JV Co is strategically positioned to seize opportunities presented in the Indonesian market.
“In line with the Group’s corporate strategy to strengthen its position as one of the leading global offshore marine players, the Group is bringing to the joint venture its 20-year track record in building and delivering quality offshore support vessels. In addition, the joint venture will help to enhance the Group’s vessel chartering operations and grow its recurring income stream through the utilisation of BNI’s ship management and crew expertise. The Directors of the Company believe the joint venture is in line with the Company’s intention to grow our presence in the Indonesian market,” Nam Cheong said in a filing to the Singapore Exchange.
September 19, 2013