Disposal of shares in CWT Globelink Pte Ltd ("CWT Globelink")
The Board of Directors of Samudera Shipping Line Ltd ("SSL") wishes to announce that Samudera Indonesia Singapore Pte Ltd, a 94% owned subsidiary (the Subsidiary), has on 8 August 2002 entered into a Sale and Purchase Agreement ("the Agreement") with CWT Distribution Limited for the disposal of its entire 29% shareholding in CWT Globelink comprising of 232,000 ordinary shares, for a total net consideration of S$5.90 million.
About CWT Globelink
CWT Globelink, a company providing international freight forwarding services entailing consolidation/deconsolidation of cargo for export/import and transhipment, has an authorized and issued ordinary share capital of S$800,000 comprising 800,000 ordinary shares of $1 per share, of which 29% of the ordinary share capital was held by the Subsidiary.
Basis of purchase consideration
The audited NTA of the group of CWT Globelink as at 31 December 2001 is about S$11.84 million and the cash purchase consideration for the Agreement is S$5.90 million. The Subsidiary's carrying investment cost in CWT Globelink as at 31 December 2001 is approximately S$3.15 million.
The price was arrived at on a willing buyer willing seller basis having considered the audited net profit after taxation and minority interest of the group of CWT Globelink of S$1.85 million for the latest financial year ended 31 December 2001.
As a result of this transaction, CWT Globelink ceases to be an associated company of SSL with immediate effect. The proceeds from the shares sale will be utilized to finance other investment and/or working capital as they arise.
Rationale for the Sale
This disposal is in line with the Company's strategy of divesting its non-core business to stay focus on its core competencies and expertise to achieve synergy.
The Company prefers to have a significant control in its investment so that appropriate business decision can be made and taken on a timely basis.
Financial Impact
| SSL Group | Before Disposal of Associate | After Disposal of Associate |
| Net Tangible Assets per share | 40.54 cents | 41.14 cents |
| Earning per share (EPS) | 1.53 cents | 2.11 cents* |
The financial impacts as set out above are based on the audited accounts of the Company and Group for the financial year ended 31 December 2001, the gain on disposal of associate and the realization of translation reserve as related to the disposal.
* Earning per share above takes into consideration of the gain on disposal of associate amounting to approximately S$2.75 million and the realization of the translation reserve of approximately S$0.11 million.
None of the directors has any interest in the transaction except Mr Randy Effendi who has an interest of 6% of the issued share capital in the Subsidiary.