Samudera Shipping announces disposal of subsidiary, Silkargo LLC.
The Board of Directors (the ?Board?) of Samudera Shipping Line Ltd (the ?Company? or ?Samudera?) wishes to announce that on 8 March 2010, the Company"s wholly-owned subsidiary, Silkargo Logistic (Singapore) Pte Ltd (the ?Seller?), has entered into a Sale and Purchase Agreement with PT. Silkargo Indonesia (the ?Purchaser?) for the disposal and purchase of the Seller"s 49% equity interest in the issued and paid-up share capital of Silkargo LLC (?Silkargo?), a company registered with the Department of Economic Development, Dubai, United Arab Emirates (the ?Disposal?), for a consideration of US$380,000 (the ?Purchase Consideration?). Following the Disposal, Silkargo will cease to be a subsidiary in the Samudera group of companies (the ?Group?).
The rationale for the Disposal, the term and condition of which have been reviewed and approved by the Audit Committee of the Company, is that the Group intends to focus on its core business activities, i.e. container shipping and industrial shipping, and exit from its current logistics business. The Group therefore disposed off its logistics activities carried out by Silkargo. Silkargo was established by the Group in 2003 to run logistics business in the United Arab Emirates. Silkargo"s activities include freight clearing services, cargo loading & unloading services, cargo packaging, and general warehousing service.
The Purchase Consideration was arrived at on a willing-buyer and willing-seller basis, having regard to Silkargo"s net tangible assets of approximately US$380,000 as at 5 January 2010.
The Purchaser will pay the Purchase Consideration to the Seller in cash on the completion date of the Disposal.
The Disposal is not expected to have any material impact on the net tangible assets or earnings per share of the Company for the current financial year.
The Purchaser is a subsidiary of PT Samudera Indonesia Tbk. (?PTSI?), a substantial shareholder of the Company. Randy Effendi, Chairman of the Company, is also a President Director of PTSI and President Commissioner of the Purchaser. Hamdi Adnan, a Director of the Company, is a Director of PTSI and Commissioner of the Purchaser. Masli Mulia, a Director of the Company, is also a Director of PTSI and President Director of the Purchaser.
Save as disclose above, none of the other Directors or the other substantial shareholders of the Company has any interest, direct or indirect, in the above transaction.