Singapore Shipping Corp. Ltd. (SGX:S19) entered into a sale and purchase agreement to acquire Island Line Pte Ltd from MYP Ltd. (SGX:F86) for SGD 2 million in cash on January 8, 2013. The acquisition will be funded through the internal resources, and on completion, the consideration shall be satisfied by Singapore Shipping in cash. MYP also entered into agreement with Singapore Shipping to sell its various equity interests in Hai Poh Terminals Pte Ltd, SSC Shipping Agencies Pte Ltd and Nanyang Maritime (S'pore) Pte Ltd. Island Line Pte reported for the year ended March 31, 2012, net profit of SGD 1 million and net tangible asset value of SGD 0.9 million.

The transaction is subject to conditions including financial, business and legal due diligence, approval of the Board of Directors and shareholders of MYP and Singapore Shipping, approval of the Board of Directors of Island Line Pte and regulatory, listing compliance and other approvals. If any of the conditions precedent is not fulfilled by any party on or before March 31, 2013 or such other date as agreed in writing, the agreement shall lapse. As on March 7, 2013, the long stop date of the transaction has been extended from March 31, 2013 to April 30, 2013.

The transaction was unanimously approved by Directors of MYP and the Directors recommended the shareholders to approve the transaction on March 21, 2013. The extraordinary general meeting will take place on April 5, 2013. As on March 27, 2013, it was announced that the extraordinary general meeting of shareholders of Singapore Shipping Corp. Ltd. will take place on April 11, 2013 to approve the transaction. The transaction is unanimously approved by Directors of Singapore Shipping and the Directors recommended the shareholders to approve the transaction. The transaction was approved by shareholders of MYP Ltd. on April 5, 2013. As of April 11, 2013, the transaction is approved by Singapore Shipping shareholders.

The cash proceeds of SGD 15 million from the proposed divestment, after deducting estimated costs and expenses of SGD 0.12 million relating thereto, is SGD 14.9 million. MYP intends to use the entire of the net cash proceeds for the purposes of investing into real estate and real estate-related assets. The acquisition is accretive to the earnings of Singapore Shipping.