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ASL announces proposed acquisition of shipyard in Batam

The Board of Directors (the “ Board ”) of ASL Marine Holdings Ltd. (the “Company”) wishes to announce that the Company and its wholly-owned subs idiary, PT. Sukses Shipyard Indonesia (the “Purchaser”), have entered into a conditional sale and purcha se agreement dated 24 January 2014 (the “Agreement”) with Miclyn Express Offshore Limited (“MEO”) and its wholly-owned subsidiary, PT Loh & Loh Construction Indonesia (the “Vendor”), pursuant to which the Purchaser has agreed to acquire the property and fixed assets in respect of ashipyard (the “Sale Assets”) from the Vendor, for the cash consideration of U S$20.0 million (equivalent to approximately S$25.6 million based on the exchange rate of US$1: S$1.279)(the “Acquisition”).

2.INFORMATION ON SALE ASSETS
The shipyard operates on the land located at Jalan Brigjen Katamso Km. 19 Tanjung Uncang Batam, Indonesia (the “ Property ”), being adjacent to the Group’s existing shipyard in Batam.

It is situated in a free trade zone with industrial areas designated specifically for shipyards with infrastructure such as roads, telecommunication ns, utilities and supporting services.

The Sale Assets comprise a site of 12.2 hectares with berthing / repair quays of 220 metres,2 shiprepair slip / launch-ways and shipyard facilities (office building, fabrication shop, and machineries) which cater for shipbuilding, vessels repair, modification and mobilisation, as well as modular fabrication services.

The Purchaser commissioned KJPP, Sarwono, Indrastuti & Rekan (“KJPP”), a property valuer, to evaluate the “market value” of the Sale Assets, being the “estimated amount for which a property should exchange on the date of valuation b etween a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsi on”.

According to its valuation report dated 15 January 2014 (the “ Valuation Report ”), and using the “value based market data approach and cost appr oach”, KJPP is of the opinion that the market value of the Sale Assets as at 20 December 2 013 is Rp310.6 billion (equivalent to approximately S$33.0 million based on the exchange rate of S$1: Rp9,426).

3. INFORMATION ON VENDOR MEO is headquartered in Singapore and is a leading provider of offshore vessel services. It operates a range of offshore support vessels, crew/ utility vessels, tugs and barges for customers in the offshore oil and gas industry acro ss South-East Asia, Australia and the Middle East.
Source: ASL Marine Holdings Ltd.