EA Technique to acquire tugboat from Singapore firm

KUALA LUMPUR (Sept 8): EA Technique (M) Bhd is acquiring a new tugboat for US$3.75 million (RM16.72 million) in cash to undertake activities associated with marine terminal operations.

In a bourse filing, the Practice Note 17 (PN17) company said it is buying the vessel from Singapore-based shibuilder Poet Shipbuilding & Engineering Pte Ltd.

The 250 deadweight tonnage vessel was built this year by China-based Jiangsu Suyang Marine Co Ltd and will be registered and flagged in Malaysia.

EA Technique said it is acquiring the vessel to fulfill the contract awarded to the company in December last year. The RM30 million contract is for the provision and operation of a 40-tonne bollard pull harbour tug for five years with three extension options of one year each.

The company said it is expected to incur logistic costs of RM430,000 for the vessel to be delivered to Malaysia, with the exercise expected to be completed by the fourth quarter of 2022.

In terms of funding, EA Technique is convening an extraordinary general meeting on Sept 12 to seek its shareholders' approval for the proposed disposal of three vessels namely Nautica Kota Tinggi, Nautica Maharani and Nautica Muar for an aggregate sum of at least US$13.51 million (RM60.13 million).

EA Technique, which was classified as a PN17 company on Feb 25, has proposed to undertake a restructuring plan.

Stressing that the acquisition of the vessel is not part of the proposed regularisation plan, EA Technique said it nevertheless expects the vessel to improve its financial performance once it is deployed.

The group's share price finished unchanged at 3.5 sen, bringing it a market capitalisation of RM18.6 million.