MISC in RM1.4bil deal

The Star 21-07-2010

Purchase of 4 tankers part of unit AET’s plan to expand its fleet size

PETALING JAYA: MISC Bhd’s wholly owned subsidiary AET Inc Ltd yesterday signed a contract to purchase four new 320,000-deadweight tonne (dwt) very large crude carriers (VLCCs) from Daewoo Shipbuilding & Marine Engineering Co Ltd of South Korea for about US$430mil (RM1.38bil).

MISC said in a filing with Bursa Malaysia that the tankers would be delivered between December 2012 and October 2013.

“The contract is entered into as part of AET’s growth plans to expand its fleet of VLCCs,” it said. The total consideration of US$430mil, which is based on the price of the vessels, costs of modifications and enhancements to meet with AET’s requirements, will be paid fully through AET’s internally generated funds.

“The contract is not expected to have any material impact on the earnings of MISC for the financial year ending March 31,” MISC said.

It said the contract was not subject to the approval of any authority or its shareholders. “To the best of our knowledge, none of MISC’s directors, substantial shareholders and persons connected to them has any direct or indirect interest in the contract,” it added.

It was reported last week that AET aspired to build up a fleet of 150 tankers, including VLCCs and medium-range product tankers, with the aim of expanding its lightering business in the US. (Lightering involves the transfer of cargo between vessels of different sizes to facilitate the berthing of large oceangoing vessels at a shallow port.)
MISC, whose major shareholders are Petroliam Nasional Bhd and the Employees Provident Fund Board, said on its website that it has an existing fleet of 11 VLCCs with a total of 3.328 million dwt. “In line with our aspiration to be a total logistics provider, our fleet is expanding aggressively, along with the rapid growth of our business,” it said on the site.