Keyfield Announces US$24.7 Mln Inai Kenanga Acquisition
KUALA LUMPUR, Aug 27 (Bernama) -- Keyfield International Bhd has acquired Inai Kenanga, a mega trailing suction hopper dredger, for a cash consideration of US$24.7 million (US$1=RM4.02).
Inai Kenanga was acquired from Inai Rimba Sdn Bhd, which had been appointed by Malayan Banking Bhd as receivers and managers in March 2024.
In a statement today, Keyfield also announced the signing of a shareholders' agreement with Star Naval 1 Pte Ltd (SNPL), a company co-owned by Starhigh Asia Pacific Pte Ltd (Starhigh) and Naval Elite Ltd.
It said the agreement lays the groundwork for the setting up of a special purpose vehicle (SPV), which will eventually be 60:40 owned by Keyfield and SNPL, respectively.
“The SPV shall own and operate Inai Kenanga, allowing Keyfield and Starhigh to leverage their combined strengths to successfully secure and execute dredging projects in the future.
"Keyfield will fund US$23.8 million for Inai Kenanga’s purchase, with SNPL funding US$0.9 million plus Inai Kenanga’s estimated reactivation cost of US$15.0 million," it said.
Completed in 2016, Inai Kenanga was at the time the largest dredger in Asia and the third- largest in the world.
Built at a reported cost of RM1.2 billion, it is designed for large-scale dredging, land reclamation, marine engineering, major infrastructure and coastal development projects.
Under its previous ownership, Inai Kenanga was deployed for various dredging works in Malaysia, including a 15-year concession tenure to undertake dredging and reclamation works at federal ports.
The estimated fair market value of the dredger, as assessed by an independent market valuer, is US$63.7 million, while the estimated cost of constructing a similar dredger is upwards of US$150.0 million.
Keyfield Group chief executive officer and executive director, Datuk Darren Kee Chit Huei said following the reactivation of Inai Kenanga, which is expected to be completed in 2027, the company and Starhigh intend to participate in dredging projects in Southeast Asia, particularly Malaysia and Singapore.
"In the long term, we aim to increase the contribution of non-oil and gas activities to up to 20 per cent of the group’s total profitability.
"We are also continuing our geographical diversification strategy, through the securing of projects in the Middle East and Thailand and potentially other countries in the region," he added.
-- BERNAMA