Atlantic Navigation Holdings, together with its wholly-owned subsidiary, Atlantic Maritime Group, has proposed the disposal of the group&rsquo s fleet for a purchase consideration of US$183.0 million ($239 million). 

 

On Sept 9, Atlantic Navigation announced that it had entered into a conditional master delivery agreement with MAG Offshore Investment&rsquo s wholly-owned subsidiaries on Sept 5 for the former&rsquo s fleet, which comprises 20 offshore vessels. 

 

Currently, the fleet supports Atlantic Navigation&rsquo s marine logistics division, particularly in ship charter for the offshore oil and gas as well as marine construction industries predominantly in the Middle East region.

 

The net book value of the fleet stands at US$162.4 million for 1HFY2024 as at June 30, while the net profit attributable to the property for the same period, came to US$21.0 million. 

 

Based on the net book value of the fleet as at June 30, the proposed disposal is expected to result in a gain of disposal of approximately US$20.6 million. 

 

The net proceeds from the proposed disposal is expected to come up to US$180.8 million, where US$62 million is intended to be distributed to Atlantic Navigation&rsquo s shareholders through a capital reduction exercise while US$58 million will be given back to the company&rsquo s shareholders via a special interim dividend of US$58 million. 

 

As at Sept 9, the proposed distribution represents an aggregate of approximately 23 US cents per share. 

 

Atlantic Navigation Holdings&rsquo 5UL 3.17% significant shareholders, Saeed Investment and Bill Wong Siew Cheong, have been exploring &ldquo strategic options&rdquo in relation to their interest in the company.

 

The company says it was just notified on May 24.

 

Saeed Investment, which invested in the company back in 2018 at around 9.9 US cents (13.3 cents), holds 50.22% Wong, the company' s CEO, holds a direct stake of 31.82%.

 

Atlantic Navigation Holdings&rsquo announcement comes after it received a query from the Singapore Exchange Regulation (SGX RegCo) on its &ldquo unusual price movements&rdquo .

 

Shares in the company closed at a five-year high of 31.5 cents on May 24, 21.2% up from the previous day&rsquo s close.

 

&ldquo As at the date of this announcement, the significant shareholders have informed that the discussions are on a preliminary basis and no definitive agreements in relation to any transactions have been entered into,&rdquo says the company.

 

&ldquo There can be no assurance or certainty that any discussions will be successfully concluded and any definitive agreements be entered into. Apart from the above, the company is not aware of any information not previously announced concerning the group which might explain the trading,&rdquo it adds.

 

On May 10, Atlantic Navigation Holdings reported a 161.3% y-o-y surge in its net profit of US$4.85 million for the 1QFY2023 ended March 31.

 

1QFY2023 revenue increased by 29.4% y-o-y to US$17.8 million which was supported by strong utilisation rates across the company&rsquo s fleet of vessels.