Offshore marine services provider, PACC Offshore Services Holdings Ltd. (POSH), yesterday announced the signing of an agreement with Dolphin Shipping Company Pte Ltd (Dolphin) to acquire the remaining equity stake in their Pacific Workboats Pte Ltd (PWPL) joint venture.
PWPL is a 50:50 joint venture between POSH and Dolphin, the latter being a 100% owned subsidiary of Sembcorp Marine Limited (Sembcorp Marine). PWPL offers harbour services in Singapore and across the region.
The transaction will see POSH acquiring Dolphin’s 50% equity stake in PWPL for a consideration of US$679,464. The Acquisition is expected to complete by end 2019, following which PWPL will cease to be a joint venture of POSH and will become a wholly-owned subsidiary of POSH.
This decision to acquire the rest of PWPL is aligned with POSH’s ongoing comprehensive review of all its businesses and investments. Thereafter, POSH will continue to offer harbour services in Singapore independently while re-deploying select assets from PWPL for longer-term charters overseas.
Chief Executive Officer of POSH, Mr Lee Keng Lin, said, “We appreciate the opportunity to have worked with Sembcorp Marine for more than 15 years. The prospects for the harbour services sector remain attractive, and we look forward to this next chapter and will work to grow our business both in Singapore and abroad. This decision on PWPL marks another proactive step forward in our comprehensive business review, as we continue to sharpen our strategy and be better positioned for our next phase of growth.”
The Acquisition is not expected to have any material impact on the net tangible assets per share and earnings per share of POSH for the financial year ending 31 December 2019.