Sumatec Resources Bhd News

Asia Bioenergy Technologies Bhd's (AsiaBio) has signed a heads of agreement (HOA) with Hoe Leong Corp Ltd (HCL), Sumatec and Reachmont Logistics Sdn Bhd (RLSB) to facilitate the acquisition of Semua Shipping Sdn Bhd (SSSB) and Semado Maritime Sdn Bhd (SMSB) by the group. AsiaBio has also proposed venture into the oil and gas transportation industry, will see new shareholders, including Tan Sri Halim Saad-linked Sumatec Resources Bhd, hold a collective stake of more than 20% in the technology company. Under the HoA, SSSB and SMSB will be transferred to a special purpose vehicle (SPV). Subsequently, Asiabio will acquire the entire equity interest of the SPV by issuing shares worth RM168 million to HLCL, RLSB and Ebony Ritz Sdn Bhd (ERSB).

According to reports, Sumatec Resources Bhd, through its wholly-owned subsidiary Semua Shipping Sdn Bhd, has entered into two shipbuilding contracts with Yangzhou Kejin Shipyard Co Ltd and Jiangsu Guotai International Group Co Ltd for the construction of two 8,000-ton product oil tankers. The purchase will be funded by internally generated fund and bank borrowings. Delivery of the first vessel is expected in August 2008 while the second will be delivered in October 2008.

Sumatec Resources Bhd has ordered two units of 8,000 dwt double-hull product oil tanker from a Chinese shipyard for $11.6 million each. In a statement to Bursa Malaysia on May 22, Sumatec said it had entered into a letter of intent (LOI) with Yangzhou Kejin Shipyard Co Ltd and Jiangsu Guotai International Group Textile Imp & Exp Co Ltd for the purchase of the tankers to serve contracts from oil majors. The first tanker would be delivered by Dec 15, 2007 and the second would in March 2008. Funding for both vessels is from internal sources and bank borrowings. The company added that it had received a letter of intent from a Malaysian oil company to charter both vessels for up to 10 years. (Source: The Edge Daily)