Singapore-based offshore oilfield service provider Vallianz Holdings Ltd., through its wholly-owned subsidiary Vallianz Shipbuilding & Engineering Pte., has bought a shipyard in Batam, Indonesia (Riau Islands).
The acquisition will be executed by taking over the shipyard's owner, Singapore-based Jetlee Shipbuilding & Engineering, and the latter's 99%-owned Indonesian entity PT United Sindo Perkasa (PTUSP) for SGD19.8M (US$16M).
The Indonesian entity, PTUSP, owns the fabrication and engineering shipyard located at Kabil, Nongsa, Batam City, Kepulauan Riau Province, Indonesia, known as Marine Base, which occupies a land area of about 8.8 hectares with a waterfront about 390m long.
Vallianz will finance the acquisition by issuing 143.3M ordinary shares at S$0.138 each. The share price is a 24% premium to Vallianz's volume weighted average price of S$0.1116/share on 19 September.
Vallianz CEO 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."
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