Atlantic Navigation Holdings 5UL , a shipping company that provides marine logistics services in the Middle East and Indian markets, has completed the acquisition of the marine vessel, Team Clio, on May 4.
The vessel was purchased from an unrelated third party in the Middle East for US$5.5 million ($7.3 million).
About US$5 million was funded from the US$20 million medium-term loan. The group had entered into the five-year loan with one of its principal bankers in the Middle East on March 16. The remaining US$0.5 million will be funded by internal resources.
As the acquisition is deemed to be in the group’s ordinary course of business, it will not count as a “significant transaction” under Chapter 10 of the Singapore Exchange’s (SGX) Catalist rules.
The vessel, built in 2019, is a multi-purpose utility vessel (MUV) that can accommodate 50 men in modern cabins. The vessel also has a 10-tonne crane that is suitable for MUV survey and hook-up support work. It has a maximum design draft of 3.0 metres and is expected to work mainly in the Middle East.
The contract is not expected to have a material effect on the group’s net earnings per share (EPS) and net tangible assets (NTA) per share for the FY2023 ending Dec 31.
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As at April 30, the group has 19 vessels with an average age of around 7.8 years in its fleet. The 19 vessels include Vega Egypt 1, whose acquisition was approved at the group’s extraordinary general meeting (EGM) held on April 25, the newly-acquired vessel and excludes the AOS Triumph which is currently under a liquidation process.
Shares in Atlantic Navigation Holdings closed 2 cents higher or 17.86% up at 13.2 cents on May 4.
