Wednesday, 2 April 2014

Swissco acquire waterfront property and going into rig business

Swissco had make moves recently in their expansion plan. Refer below news. Of course it is good news, but the downside is increase in debt. 

Swissco is just a very small part of my portfolio. I had also blog about this company earlier. I am still thinking if I should purchase more of this company and wait till it's shares is consolidated. 

Still Thinking........ 

• Proposed S$285 million acquisition of a fast-growing international rig owner marks
Swissco Group’s foray into the offshore rig chartering business
• Acquisition to diversify earnings base and provide recurring income for Swissco Group

Swissco accepted an option to purchase for the property at No. 21 Tuas Road, Singapore 638489 for a cash consideration of S$16,200,000/- from an unrelated party. The Tuas Property is a leasehold property and has a total land area of approximately 26,248 square metres. It has a water front of about 107 metres and a 30 metres by 100 metres slipway.

Rationale for the Transaction. The Group now owns a ship repair yard at 58/60 Penjuru Lane with a dry dock and two slip ways to carry out dry docking and afloat repairs for both our fleet and third party vessels. The Group has increased its fleet over the years and this has resulted in the need for an additional water front yard facility. The Tuas Property to be acquired has a water front of about 107 metres and a 30 metres by 100 metres slipway and is suitable as a base to manage and service our expanded fleet as well as to provide repair service to third party vessels.

The property belongs formerly to JP Nelson a company dealing with equipment sales and rental. 

Also heard that another Singapore listed company Gaylin had previously wanted to acquire this property as well. 

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