The Board of Directors of Alam Maritim Resources Berhad is pleased to announce that the company's wholly-owned subsidiary, Alam Subsea Pte Ltd has entered into a Sale and Purchase Contract with Eastar Offshore Pte Ltd for the purpose of acquiring one unit of ROV at a purchase consideration of SG$2.43 million equivalent to approximately RM5.75 million.
The contract dated 29 May 2008 is for the acquisition of one unit of ROV from Eastar Offshore, a subsidiary of Alam Maritim registered in Singapore. The principal activities of Eastar Offshore are designing, manufacturing and operating of ROVs.
The contract is not conditional upon any approvals being obtained from any authorities and is in line with the Group's core business in providing integrated marine support services to the offshore oil and gas facilities.
The contract is expected to contribute positively to the Group's future earnings and net tangible assets for the financial year ending 31 December 2008 and beyond. Notwithstanding this, the contract is not expected to have any material effects on the share capital and shareholding structure of Alam Maritim.
The Board of Directors of Alam Maritim Resources Berhad is of the opinion that the acquisition of the ROV is in the best interest of the company.