Stake In Ferry Company Sold

SembCorp Logistics Ltd. has entered into a conditional sale and purchase agreement with Kalpin Trading and Shipping Pte Ltd. for its 30 percent stake in Auto Batam Ferries & Tours for S$2 million. Currently, SembCorp Logistics and Kalpin have equity interests of 70 percent and 30 percent, respectively, in Auto Batam. SembCorp Logistics said Auto Batam had also entered into a conditional sale and purchase agreement with Penguin Boat International Ltd. for disposal of all its assets and businesses for a total consideration of S$28.5 million. It said the second agreement was conditional upon the approval of Penguin Boat's shareholders, and the first agreement depended on conclusion of the second pact. The completion of the two agreements would see SembCorp Logistics reaping an extraordinary gain of around S$3 million. In a separate statement, Penguin Boat said its purchase of Auto Batam would be financed through internal funds and bank borrowings. "The purchase would boost Penguin's position as a leading ferry service provider and will spearhead the company's objective of expansion of its core business to the surrounding regions," it said. It added the purchase was not expected to have a material effect on the consolidated earnings per share and net tangible assets for the financial year ending December 31, 1999.