Mohammad Al Mojil Group Company announces the Sell of Marine Services Division (MSD) of value SAR 200 Millions as following:
1.details of the deal : Sale of Marine Services Division (MSD) together with its assets and crew.
2.the deal conditions : APA agreement with Jena marine signed on August 17, 2014 subject to Saudi Aramco agreeing to the novation assignment of the contract, which is currently under process and expected eminently.
3.the deal parties : Jana Marine Services and Mohammed Al Mojil Group Company (MMG)
4.details of the main asset operations : The division principal activities are servicing the offshore oil & Gas facilities of Saudi Aramco on a contractual basis
5.Deal reasons :The sale of the marine division is a principal component of an asset sale program established as part of MMGs restructuring plan agreed with its lenders group and approved by shareholders in extraordinary general meeting in November 2012.
6.Expecting impact on the company operations : The marine division has been trading close to breakeven in recent years as MMG has not had access to the investment funds required to bring the division to an acceptable profit level. Therefore it shall be a negligible impact on the company current operations.
7.Declare of proceeds from asset selling : The proceeds from the sale of the marine division will be used to repay short term facilities granted by MMGs lenders in 2012, the repayment of which was due in 2013 but was extended pending receipt of these funds.