View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
November 4, 2013

Otto Marine to sell two AHTS vessels

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.

By admin-demo

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.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Ship Technology