Singapore-listed operator of offshore support vessels PACC ƶijϻ Services Holdings (POSH) has agreed to acquire the 50 per cent stake held by Sembcorp Marine (SMM) in harbour services provider Pacific Workboats Pte Ltd (PWPL) for over US$679,400 in cash.
PWPL is a 50:50 joint venture between POSH and Dolphin Shipping Company, a 100% owned subsidiary of Sembcorp Marine Limited. The 50% stake actually belongs to Dolphin. PWPL offers harbour services in Singapore and across the region.
The Acquisition is expected to complete by end 2019, following which PWPL will cease to be a joint venture of POSH and will become a wholly-owned subsidiary of POSH, which is the largest Asia-based international operator of offshore support vessels
This decision to acquire the rest of PWPL is aligned with POSH’s ongoing comprehensive review of all its businesses and investments. Thereafter, POSH will continue to offer harbour services in Singapore independently while re-deploying select assets from PWPL for longer-term charters overseas.
Chief Executive Officer of POSH, Mr Lee Keng Lin, said, “We appreciate the opportunity to have worked with Sembcorp Marine for more than 15 years. The prospects for the harbour services sector remain attractive, and we look forward to this next chapter and will work to grow our business both in Singapore and abroad. This decision on PWPL marks another proactive step forward in our comprehensive business review, as we continue to sharpen our strategy and be better positioned for our next phase of growth.”
The Acquisition is not expected to have any material impact on the net tangible assets per share and earnings per share of POSH for the financial year ending 31 December 2019.