As a follow-up announcement to the several inter-related announcements made by Kejuruteraan Samudra Timur Berhad (“KSTB”) earlier on in respect of the termination of the Shareholders’ Agreements entered into between KSTB and Gagie Corporation S.A. (“Gagie”) as a consequence of the disputes between KSTB and Gagie which led to the Court Injunction served on KSTB and its wholly-owned subsidiary, KST Fishing Services Sdn. Bhd. (“KSTF”) and subsequently discontinuation of oilfields fishing operation by KSTB and KSTF, KSTB is pleased to announce that its jointly controlled entity, KST Gagie Labuan Ltd. (“KSTGLL”), a joint-venture company with Gagie, has on 24 July 2008 entered into an Asset Purchase Agreement with Smith International Inc (“Smith”) (hereinafter referred to as “Disposal to Smith”) to dispose all its principal oilfields fishing tools and equipment identified by Smith for a total cash consideration of USD4,732,626.11 (equivalent to RM15,350,272.79 based on the exchange rate of USD1.00:RM3.2435) subject to the terms and conditions therein. The consideration was arrived at on a willing buyer and willing seller basis after taking into consideration of the book value of the said tools and equipment.
The Disposal to Smith is the result of the Asset Disposal Exercise approved and resolved by the Board of Directors of KSTGLL on 27 November 2007 and was approved by the shareholders of KSTGLL (being KSTB, KSTF and Gagie) on 7 July 2008. The proceeds from the disposal is to be fully utilised to repay part of the outstanding credit facilities utilised by KSTGLL from Maybank International (L) Ltd and RHB Bank (L) Ltd totaling to approximately USD5.4 million as at 30 June 2008.
KSTB has provided corporate guarantees in respect of the aforesaid credit facilities and KSTB had in the last financial year ended 31 December 2007 provided for the potential liability arising from the potential crystallisation of the said corporate guarantees amounting to approximately RM7.0 million by reference to the indicative purchase prices offered by the prospective buyers then. Based on the cash consideration of the Disposal to Smith, the Company does not foresee any requirement to make further provision in relation to the aforesaid disposal for the current financial year ending 31 December 2008.
Smith International, Inc., a State of Delaware, United States of America corporation having its principal office located at 16740 Hardy Road, Houston, Texas, 77032 United States of America is a company listed on the New York Stock Exchange. Smith is a leading worldwide supplier of premium products and services to the oil and gas exploration and production industry, the petrochemical industry and other industrial markets. It provides a comprehensive line of technologically-advanced products and engineering services, including drilling and completion fluid systems, solids-control equipment, waste-management services, production chemicals, three-cone and fixed cutter drill bits, turbines, fishing services, drilling tools, underreamers, casing exit and multilateral systems, packers and liner hangers. Smith International Inc also offers supply-chain management solutions through and extensive North American branch network providing pipe, valves, fitting, mill, safety and other maintenance products. (Source: Smith International Inc website).
None of the directors or substantial shareholders of KSTB or persons connected to them have any interest, direct or indirect, in the above disposal.
The Disposal to Smith is the result of the Asset Disposal Exercise approved and resolved by the Board of Directors of KSTGLL on 27 November 2007 and was approved by the shareholders of KSTGLL (being KSTB, KSTF and Gagie) on 7 July 2008. The proceeds from the disposal is to be fully utilised to repay part of the outstanding credit facilities utilised by KSTGLL from Maybank International (L) Ltd and RHB Bank (L) Ltd totaling to approximately USD5.4 million as at 30 June 2008.
KSTB has provided corporate guarantees in respect of the aforesaid credit facilities and KSTB had in the last financial year ended 31 December 2007 provided for the potential liability arising from the potential crystallisation of the said corporate guarantees amounting to approximately RM7.0 million by reference to the indicative purchase prices offered by the prospective buyers then. Based on the cash consideration of the Disposal to Smith, the Company does not foresee any requirement to make further provision in relation to the aforesaid disposal for the current financial year ending 31 December 2008.
Smith International, Inc., a State of Delaware, United States of America corporation having its principal office located at 16740 Hardy Road, Houston, Texas, 77032 United States of America is a company listed on the New York Stock Exchange. Smith is a leading worldwide supplier of premium products and services to the oil and gas exploration and production industry, the petrochemical industry and other industrial markets. It provides a comprehensive line of technologically-advanced products and engineering services, including drilling and completion fluid systems, solids-control equipment, waste-management services, production chemicals, three-cone and fixed cutter drill bits, turbines, fishing services, drilling tools, underreamers, casing exit and multilateral systems, packers and liner hangers. Smith International Inc also offers supply-chain management solutions through and extensive North American branch network providing pipe, valves, fitting, mill, safety and other maintenance products. (Source: Smith International Inc website).
None of the directors or substantial shareholders of KSTB or persons connected to them have any interest, direct or indirect, in the above disposal.
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