KUCHING: Shin Yang Shipping Corporation Bhd (Syscorp) has exited ship repair and fabrication business in the Middle East.
Its 90 percent-owned indirect subsidiary Shin Yang FZC (SYFZC) has disposed of its entire 45 percent equity interest comprising 450 shares in capital of Shin Yang Shipbuilding & Engineering RMC FZC (Sysbe) on March 13, 2019.
Of the disposal, 35 percent equity interest in capital of Sysbe was sold to Solar Petra Sdn Bhd for AED10 (equivalent to RM11.10) and the remaining 10 percent to Juma Khalifa Obaid Abushibs for AED1 (RM1.11), Syscorp said in a filing with Bursa Malaysia.
Syscorp said the company received a stamped statutory confirmation from Ras Al Khaimah Maritime City Free Zone Authority, government of Ras Al Khaimah, United Arab Emirates (UAE) on the disposal.
Following the disposal, Sysbe, whose principal activity is ship repair and fabrication, has ceased to be an associate company of Syscorp. Syscorp group is involved in shipping, shipbuilding and ship repair business.
On the rationale for the disposal, Syscorp said it was not feasible to continue the business in anticipation of higher cost of operations, and that returns from this investment did not meet the company’s expectation.
“The board of directors having considered all aspects of the disposal is of the opinion that the disposal is in the best interest of the company and the group as well as fair, reasonable and on normal commercial terms and not detrimental to the interest of the minority shareholders of the company.
“The disposal is not expected to have any material effect on the net assets per share, earnings per share, gearing and share capital or the substantial shareholders’ shareholdings of the company and Syscorp group for the financial year ending 30 June 2019,” it added.
Syscorp, which operates a fleet of 268 vessels with total gross registered tonnage of 380,300 tonnes, has its shipping operations covering both Malaysian and international waters, ranging from South East Asia, East Asia and the Far East region to the Gulf region in the Middle East.
In a separate development, Zecon Bhd has redesignated Datuk Bolhassan Di @ Ahmad Di to independent director from non executive director from April 1.
Bolhassan was a former state assistant minister from 1998 to 2009.He began his career as an engineer with Sarawak Shell Bhd and had served as chairman of the Miri Port Authority and Kuching Port Authority.
In recent months, Bolhassan has aggressively sold down his stake in Zecon to about 1.173 million shares or 0.9 percent from about nine percent at one time.
