SGX questions Viking Offshore & Marine's planned S$12.1m sale of main office

CATALIST-LISTED Viking Offshore & Marine's plan to lease certain assets after selling them off "will help minimise disruptions and provide continuity to the group's operations", the board of the distressed offshore and marine firm said on Tuesday night.

It noted that the properties now house its principal place of business, including its main office; unused areas are sub-let to third parties.

Viking was replying to queries from the Singapore Exchange over its Sept 18 deal to sell two properties in Kian Teck Road in Jurong for S$12.1 million in cash, and its ongoing talks with buyer Kinghaus Engineering on a term lease for parts of the properties.

The board said that the price tag for the deal, which was reached at arm's length, takes into account factors such as Viking's financial condition and its inability to meet its debt-repayment obligation to Maybank Singapore, the properties' mortgagee.

Still, Viking will commission a valuation of the properties before a definitive agreement is entered into, the board added. Since the parties have only entered into a term sheet, the value of the transaction is not confirmed, and could still be subject to change when the definitive agreement is inked.

The board also confirmed that the planned sale constitutes a major transaction under Catalist rules and will need the green light from shareholders.