02/05/2022 - 11:05

MMA Offshore sells Indonesian shipyard

02/05/2022 - 11:05

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The Perth-based marine services company is set to pocket $US15 million (A$21.3 million) from the sale as it seeks to shed non-core assets.

MMA Offshore sells Indonesian shipyard
Perth-based marine services business MMA Offshore is selling one of its shipyards. Photo: MMA Offshore

The Perth-based marine services company is set to pocket $US15 million (A$21.3 million) from the sale as it seeks to shed non-core assets.

MMA Offshore entered an agreement with Brisbane-based Wasco Engineering, which is set to acquire the shipyard facility for $US15 million (A$21.3 million) on or before December 30 2022.

Located in the port city of Batam in Indonesia, the facility will remain sub-leased to Wasco, with rent to gradually in line with tranche payments.

MMA will also retain a portion of the Batam Facility allowing it to maintain access to the wharf for a period of five years once the sale has been completed.

MMA managing director David Ross said the deal was in line with the company’s bid to divest non-core assets.

“The consideration of US$15 million (approximately A$20 million) will materially reduce our net debt position, deleverage our balance sheet and position the company well to take advantage of growth opportunities in an improving market,” Mr Ross said.

MMA recently sold one of its vessels to Fortescue Future Industries for $A10.5 million, which is set to be converted into a green-ammonia-powered ship.

Proceeds from this sale will also be directed towards reducing liabilities.

MMA shares were off 0.88 per cent at 12:31pm AEST to trade at 56 cents.

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