Ezion Holdings Limited announced on Wednesday (Jan15) that the Group had entered into a memorandum of agreement with Astro Offshore Pte. Ltd. to dispose an offshore vessel, Teras Genesis at a cash consideration of US$2,250,000.
The Purchaser is a company incorporated in Singapore who owns and operates a fleet of offshore support vessels. The director(s) and shareholder(s) of the Purchaser are not related or connected to the Company, the Directors or the Group.
The sale consideration was arrived at after arm's length negotiations, on a "willing buyer and willing seller" basis taking into account, amongst other factors, the future burn rates of the Vessel.
The aggregate carrying value of the Vessel as at 30 September 2019 is approximately US$1,392,000. The Disposal is expected to generate a gain on disposal of US$858,000. The consideration received from the Disposal will be utilised to repay the secured bank loans of the Group. The mortgage over the Vessel will be discharged pursuant to the Disposal.
The Group is of the view that the Disposal is in line with the Group’s plan to focus on its liftboats and reduce burn rates of the service rigs and vessels. This will also enable the Group to improve the efficient use of its capital and cash flow.