The disposal, to Singapore-based ship trading company SOMAP International Pte Ltd, would allow Puncak Niaga to focus on its existing core businesses, the group said in a filing.
The businesses include water and wastewater, sewage, environmental engineering and construction, as well as oil palm plantation.
The pipe lay barge DLB264 was built by NV Rotterdamsche Drydock, Netherlands in 1966 for American Bureau of Shipping. It is presently registered under the Malaysian flag, with Puncak Niaga’s sub-subsidiary KGL Ltd as its owner.
KGL’s principal activity is in the offshore leasing of the vessel on a time-charter basis. However, the vessel has remained unutilised for several years, due to the downturn in the oil and gas industry.
“The proposed disposal will enable the group to stop incurring more expenses to maintain an idle vessel,” Puncak Niaga said.
The group expects the proposed disposal, which does not require shareholders’ approval, to be completed within the second quarter of 2018.