INTRODUCTION
The Board of Directors of Daya Materials Berhad (“DMB”) is pleased to announce that its sub-subsidiary, Daya OCI (Labuan) Bhd. (“DOCIL”) had on 3 September 2013 entered into a charter agreement with Siem Offshore Rederi AS for one of their DP2 Offshore Subsea Construction Vessels (“OSCV”) which is to be named the Siem Daya 2 (“the Vessel”) (“the Charter”) for five (5) years with an option to purchase.
DELIVERY TERM
The delivery of the Vessel to DOCIL is expected to be in 15 December 2013 for a period of five (5) years.
INFORMATION ON DOCIL
DOCIL is a private company limited by shares incorporated under the Companies Act 1965 on 19 November 2012 and having a registered office and principal business address at Brumby Centre, Lot 42, Jalan Muhibbah,87000 Labuan F.T. Malaysia.
DOCIL is a wholly owned subsidiary of Daya OCI Sdn. Bhd. (“DOCI”), which in turn is a subsidiary of DMB, with a paid-up share capital of USD2 divided by 2 ordinary shares of USD1.00 each
DOCIL is to principally engage in the shipping leasing business and other related services to the oil and gas industry.
INFORMATION ON SIEM OFFSHORE REDERI AS (“SIEM”)
SIEM is a private limited company incorporated in Norway involve in the ownership and operations of modern support vessels for the global oil and gas service industry. SIEM currently owns a fleet of 44 vessels which include large anchor handling tug supply vessels, platform supply vessels and other support vessels.
SIEM has an integrated operation with offices in Norway, Brazil and Cayman Islands, and provide a wide range of services from its vessels, equipment and experienced onshore and offshore personnel.
INFORMATION ON THE VESSEL
The Vessel is specially designed for permanently installed Remote Operated Vehicle (“ROV”) and crane operations for seabed to surface interventions through its moonpool. The Vessel shall be equipped with two man riding AHC cranes, a 250ton and a 50ton supported by Modulated Saturation / Air diving equipment.
PROSPECT AND RISK FACTORS INVOLVED
The prospect of the Charter is positive as it shall enable the DMB group of companies ("DMB group") to make use of its newly secured vessel and multi-purpose support spreads to combine its subsea services and expertise to deliver cost-effective, tailored solutions to meet its individual client needs.
The risks associated with the Charter are normal operational risks which can be mitigated through the DMB group’s system of project management and internal business controls.
FINANCIAL EFFECTS
The Charter is to extend the DMB group’s existing range of services offered and shall in turn, expected to contribute positively towards the DMB group’s earnings and net assets throughout the period of the Charter.
APPROVAL OF THE SHAREHOLDERS AND RELEVANT GOVERNMENT AUTHORITIES
The Charter is not subject to the approval of the shareholders and relevant government authorities.
DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS INTEREST
None of the Directors or major shareholders or persons connected to the Directors or major Shareholders has any direct or indirect interest in the Charter.
This announcement is dated 4 September 2013.