The Board wishes to update shareholders that following such strategic review, it has determined that it is in the best interests of the Company and the Group to discontinue the Cattle Line Business, which would, among others, involve the disposal of the Livestock Vessel Assets (the " Proposed Discontinuation" ) as:

 

(i) the Group would have to incur significant expenses in the form of reactivation costs (including repair and maintenance works, reinstatement of licenses etc.) on the two livestock vessels in order for the vessels to regain seaworthiness, which would take away resources from the Group' s other viable business segments and

 

(ii) the Group would be able to focus its time and effort on its other core business segments, namely our Infrastructure Engineering segment, our Corrosion Prevention segment and our Supply & Distribution segment.

 

The Group is likely to record a loss from the disposal of the Livestock Vessel Assets, the extent of which would depend on the amounts recovered by the Group under such disposal. While management remains optimistic about the Group' s other business segments, the one-time loss on the disposal of the Livestock Vessel Assets may cause the Group to record a loss for the financial year ending 31 December 2022.

 

The Group has engaged RSM Corporate Advisory Pte Ltd to advise it on the Proposed Discontinuation.