The Hong Kong-listed company said in a stock market announcement that it would be paying $103.3m for a semi-submersible heavy lift vessel. AEL also announced it would be partially funding the purchase with a share placement that would raise HKD384m ($49.5m). Part of the proceeds would also be used for general working capital as well as for the group's railway business.
Explaining the move into the niche segment, AEL noted that there are not many players and rising potential as the price of oil is expected to rise and the demand for offshore construction along with it.
The type-1 vessel, which has a capacity of between 50,000 and 75,000 tons, will be delivered from a Taiwanese shipyard in May and already has two firm contracts lined up along with four letters of intent.
The first charter party is with a leading Norwegian oil and gas services company for the transport of a drilling platform main support frame from Thailand to Norway from June to August worth $8.6m.
The other is from a Singapore company for the transport of jack up rig modules from Singapore to Mexico from September to December worth $7.2m.
AEL is the first privately owned company to operate a rail line in China, with its Zunxiao Railway connecting inland and coastal China, as well as northeastern China and northern China. It also entered the dry bulk logistics segment in 2010 with the purchase of Ocean Jade Investments.
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