Perdana Petroleum Berhad (PPB) announces that Perdana Mercury Ltd (“PML”), a wholly-owned subsidiary of Perdana Petroleum, has on 21 November 2013, agreed to terminate the bareboat charter arrangement with Mount Bintang LLC and Mount Bubu LLC on three vessels, i.e. “Perdana Liberty”, “Perdana Frontier” and “Perdana Horizon”.
On the same date, Perdana Pluto Ltd, a wholly-owned subsidiary of PPB, had entered into Memorandum of Agreements with Mount Bintang and Mount Bubu to purchase the vessels for approximately USD50.0 million.
The Termination and the Purchase will result in the recognition of the vessels as assets of the Perdana Petroleum Berhad and hence converting the vessels that are foreign flag to Malaysian flag.
The PPB Group has secured re-financing facilities of approximately USD34.0 million to part finance the purchase of the Vessels.
The Termination and the Purchase does not have any effect on the issued and paid-up share capital of PPB or the shareholdings of PPB’s substantial shareholders and the net assets per share. It will result in savings in terms of lease rental expense against interest cost and depreciation of about RM10.0 million per year.
November 25, 2013