Viking acquired in Jan 2010.Viking Offshore & Marine (Viking)

PHPL acquired at discount to fair market value.

PHPL for S$18m in cash and the rest (S$4.25m) in the form of Viking

shares (~3.6% dilution). The fair market value of assets to be acquired was

S$32m as at 23 Jun 2010 but NTA was S$10.9m as at 31 Dec 09 as the

bulk of the assets were carried at cost. Revenue and net profit were S$14.9m

and S$6.2m in FY09 respectively.Viking will acquire

Marine accom enjoys high revenue.

S$61m in FY09 while the average historical unaudited revenue for FY06-09

was S$51m. This will help propel Viking's revenue - management hopes to

raise revenue past the S$100m mark so as to be part of the Singapore

government's initiative to grow 1000 local firms with revenues of over S$100m

by 2020. With subsidiaries in China, Viking hopes to develop this business

with its facilities in China (e.g. Viking Airtech Yantai). Despite the high

revenue, net profit in FY09 is estimated to be less than S$1m only. We

think Viking will aim to see how it can improve productivity and realize

synergies among its business units, leading to greater efficiency and higher

margins. According to management, MAPL also has a large client base

that Viking can tap on.MAPL enjoyed high revenue of

Market likely to monitor cashflows.

09) and it also raised S$7m from sale of equity investments in May this

year, leaving about S$25m of quoted equity investments (at market value)

left on its balance sheet. S$10m of the PHPL cash consideration will be

paid on the completion date (about Aug) and the rest in Jan 2011, making

it less of a constraint on the group's cash resources. We have adjusted our

estimates and our fair value estimate inches up to S$0.32. Maintain Viking has about S$15m cash (end-BUY.

(Low Pei Han)