Beng Kuang Marine BEZ has entered into a conditional land sale & purchase agreement to sell a part of its Batam waterfront shipyard property for $8.64 million to a subsidiary of Oil States Industries, a major global provider of integrated energy systems and solutions.
In the recent years, the group has been prioritising cost minimisation and deleveraging initiatives, while focusing on monetising fixed assets and high-potential business segments within its core business divisions to create new growth catalysts.
Yong Jiunn Run, CEO of Beng Kuang says: “Capping another milestone in rationalising our fixed assets and transition towards an asset-light business model, this transaction provides an opportunity for the group to unlock value and partially monetise our shipyard property at a premium to our initial investment.”
“The proceeds from this transaction will significantly enhance our liquidity position, strengthen our balance sheet and further reduce our gearing as well as interest expenses. Building on this momentum, Beng Kuang Group will have more financial agility to harness the opportunities in the marine and offshore industries, accelerating our turnaround strategy in 2023,” he adds.
Shares in Beng Kuang closed at 4 cents on Apr 12.
