Silk Holdings' subsidiary buys two vessels for RM219 mil

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KUALA LUMPUR (Oct 30): Jasa Merin (Malaysia) Sdn Bhd, a 70%-owned subsidiary of SILK Holdings Bhd, has entered into an agreement with Muhibbah Marine Engineering Sdn Bhd to acquire two vessels for a total of RM219 million.

In a filing with Bursa Malaysia this evening, SILK Holdings said both vessels are expected to be delivered by the end of the second quarter of 2015.

"The agreement for the new vessels is in line with the group’s on-going fleet-renewal and expansion initiative," it said.

The purchase will be funded by a mix of internal funds and borrowings.

"The contracts will likely result in an increase in gearing for the financial year ending 31 July 2015 as part of the purchase consideration will be paid for by borrowings," it added in its filing.

The stock closed four sen higher at 85 sen, with a market capitalisation of RM599.81 million.