Based on the unconsolidated financial statements of Hoe Leong Corporation for the FY19 ended Dec 31, 2019 the book value of the 496 metric tonne vessel was approximately $607,000 as at Dec 31, 2019. Net losses attributable to the vessel as at the same period came at around $5.0 million.
The consideration represents an excess of approximately $1.9 million over the book value of Arkstar Unicorn as at Dec 31, 2019. The net proceeds from the proposed disposal amounts to some $2.1 million after deducting estimated costs and expenses.
The gain on disposal after the completion of the proposed disposal amounts to an estimated $1.5 million.
According to the valuation report conducted by independent valuer M3 Marine Valuations, Arkstar Unicorn had a market value of US$1.5 million to US$2 million as at March 30, based on an “as is, where is” sale between a willing buyer and a willing seller in the Arabian Gulf.
Hoe Leong says it intends to utilise the net proceeds from the proposed disposal by repaying its existing bank borrowings due to DBS of $217,763. An approximate sum of $1.9 million will go towards the partial settlement of other liabilities of Arkstar Unicorn Pte. Ltd.
Shares in Hoe Leong last traded at 0.2 cents.
