EA Technique Raises Working Capital With A US$5.05m Sale

62

EA Technique (M) Bhd announced the sale of its yacht Nautica Renggam (NRG) to a Korean business for US$5.05 million in cash or RM21.39 million equivalent, reports an article published in The Edge Markets.

Agreement for sale

EA Technique said in a regulatory filing on Tuesday (May 10) that it had completed a deal to sell NRG to Korea-based C&M Co Ltd after receiving the best offer on April 15 through the former’s independent broker Braemar ACM (Singapore).

Netbook value 

NRG is an oil/chemical tanker that the business purchased on May 13, 2016, for RM18 million minus rehabilitation costs. 

According to EA Technique’s filing, NRG has an audited net book value of RM18.4 million as of December 31, 2021.

Payment of the broker 

The business stated that it will receive a 20% deposit of the US$5.05 million (RM21.39 million) cash consideration within four banking days of the agreement’s signing on April 15.

With the remaining 80% due upon delivery of the vessel, which is expected to be in the fourth week of May 2022.

Meanwhile, EA Technique intends to use the profits to invest RM20.53 million in working capital, with the remaining RM856,000 (or 4% of the sale proceeds) going to pay the broker’s fee.

Slipped into Practice 

For the financial year ending December 31, 2022, the business anticipates a gain of RM1.13 million from the sale (FY22).

On Tuesday, EA Technique shares plummeted half a sen, or 11.1 percent, to four sen apiece, valuing the company at RM21.2 million. 

Since February 25, 2022, the company has been in Practice Note 17 (PN17).

Did you subscribe to our daily Newsletter?

It’s Free! Click here to Subscribe

Source: TheEdgeMarkets

LEAVE A REPLY

This site uses Akismet to reduce spam. Learn how your comment data is processed.