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Hot stock: Shares of Otto Marine gain on vessel sale

SHARES of offshore chartering group Otto Marine on Monday rose 4.4 per cent after it said its shipyard division had sold an Anchor Handling Tug Supply Vessel (AHTS) to a unrelated third party for US$100 million.

The stock gained 0.2 Singapore cents at S$0.048, with 6.69 million shares changing hands. It was among the most actively traded stock in morning trade.

The AHTS, a Norwegian-designed vessel that can operate and handle large rigs in the ultra-deepwater region, is under construction at Otto Marine's shipyard in Batam, Indonesia. It is expected to be completed in the second quarter of 2015.

GO Offshore (L) Private Limited, a subsidiary of the group, will charter the vessel for eight years after the completion of the vessel.

The sale is expected to have a positive contribution to the consolidated net tangible assets per share and earnings per share of the group for the financial year ending Dec 31, 2014.