ZhongXie (HK) Industrial Company., Limited entered into share purchase agreement to acquire Teras Sunrise Pte, Ltd. from Ezion Holdings Limited (SGX:5ME) for $80.2 million on July 13, 2021. At closing, the sale shares are to be delivered to the Purchaser on a free of encumbrance basis, and TSPL shall have no material assets other than the ownership over the vessel “Teras Sunrise” and the other charter receivables for the charter of the vessel “Teras Sunrise”. At closing, the vessel “Teras Sunrise” shall be free of encumbrances (save for charter parties), and TSPL shall be free of debt owing to any party (other than ZhongXie (HK) Industrial Company., Limited), including to DBS and members of the Group.

In a related transaction, ZhongXie (HK) Industrial Company., Limited signed a memoranda of agreement to acquire Teras Darius and Teras Eden from Meridian Maritime Pte. Ltd, for $3.5 million on July 13, 2021. SGD 0.1 million ($0.07 million) of the consideration of $80.2 million shall be for the purchase of the sale shares, and the remaining $80 million shall be used for the partial repayment of the debt owing by TSPL to DBS Bank Limited.

The agreements were executed respectively by United Overseas Bank Limited (UOB) as attorney-in-fact of MMPL and DBS Bank Limited (DBS) as attorney-in-fact of the Ezion Holdings Limited pursuant to powers of attorney granted to UOB and DBS respectively as mortgagees and/or charges under certain financing agreements in respect of the Vessels. For the year ended December 31, 2020, net book value of Teras Sunrise Pte, Ltd is $65 million and net profit is $8.9 million. The transaction is expected to complete in the third quarter of 2021.