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Straits Inter Logistics subsidiary Beluga Asia acquires bunker tanker to increase service availability

27 Jul 2020

Malaysia-listed Straits Inter Logistics Berhad (SIL), principally engaged in oil trading, bunkering and investment holding activities, on Friday (24 July) said Beluga Asia, has entered into a Memorandum of Agreement (MOA) with Sun Marine Corporation (SMC) to acquire a vessel named M.T. MA Veronica.

Beluga Asia is an investment holding company, a wholly owned subsidiary of Tumpuan Megah Development Berhad (TMD) which in turn, is a 55% owned subsidiary of SIL.

SMC is a shipping services company based in the Philippines. 

The purchase consideration of the transaction is USD 2.45 million (MYR10 million) to be fulfilled entirely via cash financed through internally generated funds, it said.

The purchase consideration of USD2,450,000 was arrived at, on a willing-buyer willing-seller basis, after taking into consideration the market value of M.T. MA Veronica of USD3.5 million as ascribed by the appointed independent registered valuer, BMI Appraisals Limited using the comparison method as stated in its valuation certificate dated 18 March 2020, noted SIL.

The purchase consideration represents a discount of approximately 30.0% over the Market Value as ascribed by the independent registered valuer. 

The acquisition will enable Beluga Asia to own a vessel at a discount to its Market Value for its business requirements without having the need to lease or charter from other vessel owners or operators, explained SIL.

The addition of M.T. MA Veronica will enlarge the asset base of SIL and would provide the group with the flexibility in respect of its allocation and utilization of vessels in undertaking its business activities.

Further, the vessel will be chartered to Tumpuan Megah for its business activities, which mainly caters for the demand for the trading of marine fuel oil as well as the provision of oil bunkering services of marine fuel oil.

At present, Tumpuan Megah operates in eight ports around Malaysia, which include Lumut Port, Pasir Gudang Port, Tanjung Pelepas Port, Johor Bahru Port, Kuantan Port, Kemaman Port, Kuala Terengganu Port and Labuan Port, all of which are licensed under Petroleum Development Act 1974 for its bunkering services. It has an enlarged fleet size of 11 vessels with a total carrying capacity of 22 million litres.

The details of the transaction are as follows:

Name of Vessel M.T. MA Veronica
Type Oil tanker
International Maritime Organisation

(“IMO”) number

Flag Philippines
Place of Registry Batangas
Year of Build 2008
Age 12 years
Builder’s name Taizhou Yuan Hang Shipyard, China
Deadweight Tonnage 4,711 metric tonnes
Gross tonnage 2,990 metric tonnes
Net tonnage 1,321 metric tonnes
Length over all / Depth / Breadth


99.86/ 7.60/ 15.20
Registered owner Sun Marine Corporation (SMC)
Current use Provision of oil bunkering services


Photo credit: Straits Inter Logistics Berhad
Published: 27 July, 2020

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