KUCHING: Shin Yang Shipping Corporation Bhd (Shin Yang) is expanding its shipping business in the region through the acquisition of Indonesian associate PT Baruna Adi Prasetya (BAP).
The company in a filing to Bursa Malaysia yesterday said its 99.5 per cent owned subsidiary PT Shinline (PTSL) had acquired the 49 per cent shareholding in BAP from the existing vendor, PT Perusahaan Pelayaran Samudra Karana Line (PT Karana Line) on July 1 of 4.9 million shares of 1,000 Indonesian rupiah each for a purchase price of 4.9 billion Indonesian rupiah which is equivalent to approximately RM1.35 million.
Shin Yang said the acquisition is part of the group’s strategy to expand its shipping business in international region.
It explained that at present, PT Karana Line and PT Sentra Baruna Hijau (PT SBH) held 70 per cent and 30 per cent equity interest in BAP respectively.
With the acquisition, PT Karana Line will sell its 21 per cent equity interest in BAP to PT SBH. Thus, PTSL and PT SBH will hold 49 per cent and 51 per cent equity interest in PT Karana Line respectively after the acquisition.
Karana Line is a subsidiary of PT SBH. The purchase price for the acquisition will be settled by cash through internally generated funds.
It noted that the acquisiton will not have any material effect on the share capital, net assets substantial shareholders’ shareholdings and earnings of Shin Yang group for the financial year ending June 30, 2015.