KUALA LUMPUR: Barakah Offshore Petroleum Bhd
has proposed the disposal of the Kota Laksamana 101 Barge (KL101 Barge) to PT Wintermar Rajawali Asia for US$9.7mil (RM41.81mil) in cash.
In a filing with Bursa Malaysia, Barakah said its indirect wholly-owned subsidiary, Kota Laksamana 101 Ltd entered into a conditional memorandum of agreement with PT Wintermar Rajawali Asia for the proposed disposal of KL 101 Barge.
“The proposed disposal presents an opportunity for Barakah Group to dispose of a non-revenue/profit generating asset. Despite the final disposal consideration of US$9.70mil is lower than the minimum disposal consideration approved by Barakah’s shareholders at the EGM held on March 25, 2024, the final disposal consideration represents the only offer received by Barakah Group after conducting an auction and a private tender,” it said.
The group intends to utilise the proceeds from the proposed disposal as a partial repayment of the outstanding settlement sum of US$11.06mil.
For information, EXIM Bank indicated in its letter dated Sept 26, 2024, that, subject to the bank’s approval, it supports a repayment of US$9.5mil (net of transaction costs) using proceeds from the proposed disposal. The remaining US$1.45mil will be settled via a repayment schedule to be determined.
The group intends to utilise its cash and bank balances for the settlement of the balance US$1.45mil.
The proposed disposal is also part of the group’s cost cutting initiative to realise the value of the idle KL101 Barge.
For the financial year ended June 30, 2024, the group recorded an additional impairment loss of RM16.1mil for the KL101 Barge based on the reassessed recoverable amount following the unsuccessful auction during the FYE 30 June 2024.
