Nam Cheong to Jointly Invest in Shipping Firm in Indonesia

Nam Cheong Limited has entered into a Cooperation Agreement with PT Bahtera Niaga Internasional (BNI), a company duly incorporated and validity existing under the laws of Republic of Indonesia and Ms Nelly, an Indonesian citizen (Nelly) to jointly invest in a shipping company in Indonesia.

According to the Agreement, NCP 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 consideration was arrived at on a ‘willing-buyer willing-seller’ basis, taking into account of the business prospect of the JV Co and the net tangible asset of the JV Co of US$2.3 million as at 31 August 2013, and will be satisfied in cash through internal resources.

The JV Co is a company duly incorporated and validity existing under the laws of Republic of Indonesia.

The purpose and objectives of the JV Co 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, which includes the obtaining of all necessary consents and approvals in connection therewith and the carrying out of all ancillary activities.

“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.

Nam Cheong, September 19, 2013