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Vallianz expands into ship repair with Batam yard buy

Vallianz expands into ship repair with Batam yard buy
Singapore's aggressively expanding Vallianz Holdings has announced it will acquire a shipyard on the other side of the Singapore Strait in Batam, Indonesia for SGD19.8m ($15.8m) through its subsidiary Vallianz Shipbuilding & Engineering.

The offshore shipowner and operator is to buy Singapore-based Jetlee Shipbuilding and its 99%-owned Indonesian company PT United Sindo Perkasa, which owns a shipyard in Kabil, Nongsa, Batam City.

Vallianz will fund the purchase with an offer of 143m shares at SGD0.138 each, a 24% premium on Vallianz's volume weighted average price of SGD0.1116 as of 19 September.

Darren Yeo, Vallianz ceo commented, "With direct ownership in a shipyard facility, Vallianz will have its own marine base to dock and carry out maintenance operations for our vessels and third-party vessels that are managed by the group. As we continue with our fleet expansion programme, we expect to reap greater cost savings and operating efficiencies from having our own marine base as compared to leasing third-party shipyards."

The Singapore-listed OSV operator posted a bumper profit in the second quarter this year, and further expanded its young, growing fleet with an order of four AHTS vessels from Sinopacific in August.

"The shareholders of Jetlee are industry veterans with decades of experience in the marine sector. They will be allotted new shares in Vallianz that are priced at S$0.138 per share, which is a significant premium to the current share price. This clearly underscores their confidence in the group's business and growth prospects," added Yeo. The trio Ng Chee Keong, Chan Kwan Bian and Teo Guo Ping all have extensive experience with Pan-United and Labroy Marine, the latter sold to Drydocks World in 2008.