The Board of Directors of Samudera Shipping Line Ltd (the "Company" or "Samudera") wishes to announce that the Company has disposed its two vessels (collectively the "Vessels") in February 2004.
Basis of Consideration
The total consideration for the sale of the Vessels is US$12,620,000.00 (equivalent to approximately S$ 21.45 million, based on the exchange rate of US Dollar 1 to Singapore Dollar 1.70). The consideration was arrived at on a willing-buyer-willing-seller basis. The consideration upon receipt will be used for the acquisition of either new or second-hand vessels and to finance the Group's business expansion.
The net book value of the Vessels disposed off, as at 31 January 2004 is approximately S$17.81 million and the gain on disposal is appromixately S$2.98 million. The Group's net asset value as at 30 September 2003 is S$201.58 million.
Since the Vessels were not in full operational capacity during 2003, it would not be meaningful to compute the net profit/(loss) attributable to the Vessels with accuracy and to compare it against the Group's net profit of S$2.19 million for the third quarter of FY2003.
The total sale consideration of the Vessels is approximately 10.30% of the Group's market capitalization of S$208.24 million as at 25 February 2004.
Financial Impact
| SSL Group |
Before Disposal of Vessels |
After Disposal of Vessels |
| Net Tangible Assets per ordinary share (cents) |
42.18 |
42.83 |
| Earnings per ordinary share (cents) |
2.76 |
3.41 |
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 2002.
Rationale for the Sale
The disposal is inline with the Company's plan to have a younger fleet of owned vessels, which benefits the Company operationally and in turn, provides a better service to customers and strengthen the Group's position to expand its business.
None of the Directors or controlling shareholders of the Company has any interest, direct or indirect, in the disposal of the Vessels.