Non-Discloseable Transaction - Acquisition Of Joint Venture Partner's 25% Interest In LNG East-West Shipping Company (Singapore) Pte. Ltd

14 December 2022

1. INTRODUCTION
The Board of Directors (the “Board”) of Samudera Shipping Line Ltd. (the “Company” together with its subsidiaries, the “Group”) wishes to announce that the Company has entered into a share purchase agreement dated 6 December 2022 (“Agreement”) for the purchase of 8,599,702 ordinary shares (“Sale Shares”) of LNG East-West Shipping Company (Singapore) Pte. Ltd. (“LNG EW”) from Nippon Yusen Kabushiki Kaisha (“NYK”) (the “Acquisition”).

The Acquisition is a non-disclosable transaction pursuant to Chapter 10 of the SGX-ST Listing Manual (the “Listing Manual”). Please refer to Annexure 1 for the computation of relative figures pursuant to Rule 1006 of the Listing Manual.

2. BACKGROUND
The Company is an existing shareholder of LNG EW. Upon completion of the Acquisition, the Company’s shareholding interest in LNG EW shall increase from 25% to 50%. NYK will own the remaining 50% shareholding interest in LNG EW. LNG EW’s is engaged in the liquefied natural gas transportation.

3. PURCHASE CONSIDERATION
The purchase consideration for the Acquisition of US$14,800,000.00 was arrived at on a willing-buyer willing-seller basis after taking into account various factors including the net assets value of the Sale Shares as well as the existing time charter contract that LNG EW has entered into.

The purchase consideration will be satisfied by internal resources of the Company. The book value and net asset value represented by the Sale Shares as at 30 September 2022 was US$17,941,921.

The Acquisition is not expected to have any material impact on the net tangible assets per share or earnings per share of the Company for the current financial year.

4. RATIONALE
The Acquisition allows the Company to increase its shareholding stake in LNG EW and better realise value from LNG EW.

5. TERMS OF THE ACQUISITION
The Acquisition is contingent upon fulfillment of certain conditions precedent. The Company and NYK have provided customary representations and warranties for transaction of such nature. The Acquisition is expected to complete by mid December 2022.

6. INTERESTS OF DIRECTORS AND CONTROLLING SHAREHOLDERS
None of the directors or controlling shareholders of the Company has any interest in the Acquisition.

7. OTHER INFORMATION
(a) No person has been or is proposed to be appointed as director of the Company in connection with the Acquisition. Accordingly, no service contract has been or is proposed to be entered into between the Company and any such person.

(b) The Agreement and related documents pertaining to the Acquisition are available for inspection at the Company’s registered office at 6 Raffles Quay #25-01 Singapore 048580 for a period of three (3) months from the date of this announcement.

By order of the Board,
Ridwan Hamid
Executive Director, Group Business Support
14 December 2022

Samudera Shipping Line Ltd press release