The sale of Kim Heng Offshore & Marine’s property at 48 Penjuru Road to Hoy San Stevedoring (the purchaser) will not be proceeding as previously announced in January.
According to a filing on SGX, Kim Heng O&M said that the sale was not approved by Jurong Town Council (JTC) as the purchaser did not meet the requirements to purchase a waterfront yard facility.
Accordingly, Kim Heng O&M and Hoy San Stevedoring have agreed to terminate the option to purchase (OTP). The deposit of $925,000, amounting to some 5.0% of the sale price, will be refunded to the latter as well as the Singapore Academy of Law.
See also: Kim Heng Offshore & Marine Holdings subsidiary acquires two anchor handling tugs for US$4.8 mil
Kim Heng says the cancellation of the OTP is not expected to have any material adverse impact on the consolidated net tangible assets or earnings per share of the company and the group for the FY ending Dec 31.
The group shall continue to look for suitable buyers who can meet the JTC’s requirement and will make further announcements as appropriate as and when there are material developments to the proposed sale,” it says.
Shares in Kim Heng Offshore & Marine closed 0.1 cent lower or 3.2% down at 3 cents on Oct 6.
