Company's Shipyard Sold 2 Vessels For US$170 Million And Its Subsidiary, Otto Fleet Pte. Ltd., Chartered Back The Vessels For 8 Years

29 July 2013

The Board of Directors of Otto Marine Limited (the “Company”) is pleased to announce that its shipyard has, through one of the Company’s wholly-owned subsidiaries, sold 2 Anchor Handling Tug Supply Vessels, (the “Vessels”), to a renowned unrelated third party (the “Buyer”) for an aggregate consideration of US$170 million.

On or around the completion of the sale of the Vessels, the Vessels would be chartered by the Buyer to one of the Company’s wholly-owned subsidiaries, Otto Fleet Pte. Ltd. (“Otto Fleet”), for a period of 8 years. The Vessels would in turn be hired by one of the Company’s subsidiaries, GO Offshore (Asia) Pte. Ltd., on a time-charter of 2 years from Otto Fleet.

The Vessels are currently under construction at the Company’s shipyard in Batam, Indonesia. The Vessels will be handed over to the Buyer following the completion of legal documentation and a final inspection. The transactions were arranged by North Cape Pte. Ltd.

Save as disclosed above, none of the directors or controlling shareholders of the Company has any interest, whether direct or indirect, in the above transactions other than through their shareholdings in the Company.

The transactions above are expected to have a positive impact on the consolidated net tangible assets per share or earnings per share of the Company for the financial year ending 31 December 2013.

By Order of the Board
Michael See Kian Heng
Executive Director and Group Chief Financial Officer

Otto Marine press release