Otto Marine to sell two AHTS vessels

4 November 2013 (Last Updated November 4th, 2013 18:30)

Singapore-based Otto Marine has entered into a memorandum of agreement (MOA) to sell two of its anchor handling tug supply (AHTS) vessels, Deep Sea 1 and Go Rigel, at a total combined price of $120m.

Singapore-based Otto Marine has entered into a memorandum of agreement (MOA) to sell two of its anchor handling tug supply (AHTS) vessels, Deep Sea 1 and Go Rigel, at a total combined price of $120m.

The Deep Sea 1 vessel will be sold for $95m by Otto Marine’s wholly-owned subsidiary Deep Sea 1 (DS1PL) to PT GO Marine International, an Indonesia-based company that is 49% owned by Otto Marine.

The offshore vessel is built on Otto Marine’s shipyard in Batam, Indonesia, and its sale will reduce the company’s inventory on hand.

The sale is part of the ordinary course of business of the shipyard business, claims the company.

In another development, Otto Marine’s subsidiary Go Rigel will sell its AHTS vessel, Go Rigel, to PT GO Marine International for $25m.

The proceeds from the purchase of Go Rigel will be first used towards total satisfaction of the debt secured by the existing mortgage over the vessel and other securities, and the rest will be for Go Rigel’s own account.

Commenting on the transaction, Otto Marine Board of Directors said that the sale is in the best interests of the company and its shareholders.

"The gain from the transaction would improve the liquidity of the company and its subsidiaries," the board added.