Kuala Lumpur, March 31 \u2013 Daya Materials Berhad has announced the proposed disposal of the offshore subsea construction vessel, Siem Daya 1 via the disposal of the Group\u2019s wholly-owned subsidiary, known as Daya Global 1 Ptd Ltd to Siem OCV Ptd Ltd, which is an indirect wholly-owned subsidiary of Siem Industries Inc for a total consideration of US$$100 million (equivalent to RM442.6 million).\u00a0<\/p>\n
The disposal consideration comprises of US$$82.7 million (equivalent to RM366.2 million) in cash and US$$17.3 million (equivalent to RM76.6 million) to be settled via a debt forgiveness, cancellation and settlement arrangement between Siem Offshore Rederi AS (SORA) and Canyon Offshore, Daya Vessel Limited and DMB.\u00a0<\/p>\n
The proposed disposal has been provided for in the unaudited financial results of the Group for FYE 31 December 2016. With the proposed disposal, the Group\u2019s balance sheet position will be strengthened as the borrowings will be reduced by approximately RM406.9 million.\u00a0<\/p>\n
At the same time, the proposed disposal will relieve the Group\u2019s interest expense of approximately RM19 million per annum, as well as vessel-related operating expenses and depreciation that can be eliminated completely after the transaction is completed. Last year alone, the above expenses were in excess of RM35 million.\u00a0<\/p>\n
The proposed disposable enables DMB to focus their resources on the existing profitable businesses and exit from the North Sea offshore oil & gas sector.<\/p>\n
Commenting on the proposed disposal, Group Chief Executive Officer, Datuk T. S. Lim said, \u201cThe disposal of SD1 and our exit from this business segment represents a significant and positive step for Daya\u2019s turnaround. Once the disposal is successfully completed, our gearing will be significantly reduced and our earnings will not be dragged down by this loss making business. Moving forward, our growth drivers will be from our other profitable O&G businesses and construction outfit.\u201d<\/p>\n
In the recent months, DMB has already secured new long-term contracts totalling RM330 million. The Group will continue to replenish and rebuild their orderbook.\u00a0<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
Kuala Lumpur, March 31 \u2013 Daya Materials Berhad has announced the proposed disposal of the offshore subsea construction vessel, Siem Daya 1 via the disposal of the Group\u2019s wholly-owned subsidiary, known as Daya Global 1 Ptd Ltd to Siem OCV Ptd Ltd, which is an indirect wholly-owned subsidiary of Siem Industries Inc for a total […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-293","post","type-post","status-publish","format-standard","hentry","category-corporate"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=293"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/293\/revisions"}],"predecessor-version":[{"id":6377,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/293\/revisions\/6377"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}