Thursday 28 Mar 2024
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KUALA LUMPUR (May 10): EA Technique (M) Bhd said it has sold off its vessel Nautica Renggam (NRG) to a Korean company for a cash consideration of US$5.05 million, equivalent to RM21.39 million.

In a bourse filing on Tuesday (May 10), EA Technique said it had executed an agreement for the sale of NRG to Korea-based C&M Co Ltd after obtaining the best offer through the former’s independent broker Braemar ACM (Singapore) on April 15. 

NRG is an oil/chemical tanker that was purchased by the company on May 13, 2016, with an original cost of RM18 million excluding refurbishment cost. As at Dec 31, 2021, NRG has an audited net book value of RM18.4 million, according to EA Technique’s filing.

The company said it will receive a 20% deposit of the US$5.05 million (RM21.39 million) cash consideration within four banking days from the signing of the agreement on April 15, with the 80% balance to be payable on delivery of the vessel, tentatively by the fourth week of May 2022.

Meanwhile, EA Technique plans to deploy RM20.53 million from the proceeds towards working capital, while the remaining RM856,000 or 4% of the sale proceeds will be used to pay the broker’s fee.

The company also expects to book an estimated gain of RM1.13 million from the transaction for its financial year ending Dec 31, 2022 (FY22).

EA Technique shares fell half sen or 11.1% to settle at four sen apiece on Tuesday, valuing it at RM21.2 million. The company had slipped into Practice Note 17 (PN17) status since Feb 25, 2022.

Edited ByEsther Lee
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