PACIFIC RADIANCE LTD.
COMPANY REGISTRATION NO. 200609894C
JOINT VENTURE BY WHOLLY-OWNED SUBSIDIARY WITH DUTA MARINE SDN. BHD.
The Board of Directors of Pacific Radiance Ltd. (the “Company”) wishes to announce that its wholly-owned subsidiary, Alstonia Offshore Pte. Ltd. (“Alstonia”), has on 3 March 2015 entered into a Joint Venture Agreement with Duta Marine Sdn. Bhd. (“Duta Marine”) to jointly incorporate a company to be named “Duta Radiance Maritim Sdn Bhd” (“JV Company”) in Malaysia.
Under the terms of the Joint Venture Agreement, Alstonia and Duta Marine respectively will hold 49% and 51% equity interest in JV Company. The JV Company intends to be engaged in the ship owning, operating, management and chartering of marine vessels.
The investment in the JV Company will be funded through internal resources and is not expected to have any material impact on the Company's net tangible assets and earnings per share of the Company for the current financial year.
None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the aforesaid joint venture save for their shareholdings in the Company.
By Order of the Board of
Pacific Radiance Ltd.
Loo Choo Leong
Group Finance Director
3 March 2015
The initial public offering of Pacific Radiance Ltd. was sponsored by United Overseas Bank Limited and UOB Kay Hian Private Limited (the "Joint Issue Managers"). The Joint Issue Managers assume no responsibility for the contents of this announcement.
Alstonia and Duta Marine respectively will hold 49% and 51% equity interest in the company which has been set up for the purpose of ship owning, operating, management and chartering of marine vessels.
Pacific Radiance has over 130 vessels, including 60 Indonesian flagged vessels through joint ventures and associate companies, and so the jv looks to be a strategic move into the Malaysian offshore sector which has been booming in recent years.
Singapore: Just a day after setting up a vessel owning and operating jv in Malaysia, Singapore offshore operator Pacific Radiance has said that its wholly-owned subsidiary, Crest Offshore Marine, has entered into a jv with Jiangsu Zhenjiang Shipyard in China to set up new company Radiance ZJ.
The company has been registered in Singapore and the statement from Pacific Radiance says it will be engaged in owning and operating an offshore support vessel.
Mike Meade, ceo of offshore broking firm M3 Marine, told Splash the deal between the two parties is likely an avenue for Pacific Radiance to lock in Chinese finance for vessels it will order at the yard. Meade commented: “It makes sense, it will keep the yard utilisation up and Pacific Radiance gets cheaper vessels. Jiangsu Zhenjiang is a good quality yard and Pacific Radiance are highly regarded in the business, so its a true win win”.
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