Jaya subsidiary sale on the cards

This proposed transaction is a result of a strategic review process announced in September 2013 and Jaya said it believes the move to be in the best interest of all shareholders.

The purchase consideration taken together with the US$10m cash held by Jaya as of 31 December 2013 represents S$0.826 on a per share basis (the “Gross Implied Value”).

Following completion of the proposed transaction, Jaya intends to distribute a significant portion of the purchase consideration to shareholders by way of a cash dividend.

A statement from Jaya said that following this, the Board will consider options available to the company and that shareholders will be informed once a definitive decision has been made.

The proposed transaction is subject to approval at an extraordinary general meeting of the shareholders of Jaya, regulatory approvals and other closing conditions.

The undertaking shareholders – Cathay Asset Management Company Limited, Linden Capital L.P., Orchard Avalon Limited, Orchard Centar Master Limited and Orchard Makira Master Limited, have a total interest of approximately 52.9% of the issued and paid-up shares of Jaya.

It’s as yet unclear as to how such a transaction would affect the operations of the Jaya shipyards in Singapore and Batam and orders currently going being completed. The Motorship approached Jaya on the issue but the company refused to make further comment.