2 days Ago By DIYANA ISAMUDIN
KUALA LUMPUR: Marine & General Bhd's subsidiary M&G Tankers Sdn Bhd is acquiring a clean petroleum product tanker JM Sutera 9 for RM55.19 million.In a filing with Bursa Malaysia, the company said the vessel is part of its downstream vessel optimisation strategy that is expected to enhance its competitiveness in the marine logistics sector.
Marine & General said its unit had entered into a vessel sale and purchase agreement with Muhibbah Engineering (M) Bhd's unit Muhibbah Marine Engineering Sdn Bhd to buy the vessel.The acquisition will be funded through a combination of internal funds of up to RM25 million and bank borrowings for the balance.The acquisition is expected to be completed by the end of the current financial year ending April 30, 2025.
The steel oil tanker was built in 2022 by Muhibbah Marine Engineering and currently on a bareboat charter to M&G Tankers.Marine & General is involved in the provision of charter hire of liquid bulk carriers to petro-chemical and oleo-chemical industries and currently operates four chemical tankers and one clean petroleum product tanker.The company believes the commercial prospects for its tankers over the medium term remain positive given the sustained economic activities and national economic growth in the future.
"Following the disposal of three older vessels in the past one year and upon completion of the acquisition, the average age of our downstream division chemical and oil tankers will reduce from 12 years to 9.7 years."The JM Sutera 9 comes with a gross tonnage of 6,976 that is classified by Bureau Veritas and expected to have a service lifespan of 25 years.
© New Straits Times Press (M) Bhd.
