The consideration is based on an internal assessment of about $122 million for ASOM, its subsidiaries and associated company and represents a P/E ratio of eight times of its FY2025 profit after tax. This will be supported by an independent valuation to be commissioned by Beng Kuang Marine.
Beng Kuang Marine is proposing to acquire the remaining 49% stake it does not own in its 51%-owned subsidiary, Asian Sealand Offshore and Marine (ASOM), for $60 million.
The group entered into a term sheet with Isustainability, SPRG, Leonard Chia Choong Leng and Ng Leng Soo in relation to the proposed acquisition, which remains subject to a definitive sale and purchase agreement (SPA). Chia owns Isustainability, which owns 24.5% of ASOM. Ng owns SPRG, which owns the remaining 24.5%.
