1. INTRODUCTION
The Board of Directors of LFG (“the Board”) wishes to announce that Icon Samudera (L) Inc., an indirect wholly-owned subsidiary of LFG had on 29 July 2025 entered into a Memorandum of Agreement (“MOA”) for the disposal of Icon Samudera (“Vessel”) for a total cash consideration of USD6.65 million (approximately RM28.13 million based on Bank Negara Malaysia’s USD/MYR exchange rate as at 5:00 p.m. on 4 September 2025, being the latest practicable date prior to this announcement) (“Consideration”) to Asia Investment and Asset Management Joint Stock Company (“Vessel Disposal”).
2. DETAILS OF THE VESSEL DISPOSAL
The Vessel is a Malaysian-flagged DP-1 Anchor Handling and Supply Tug (AHTS) built in 2013 with a deadweight tonnage of 1,374 tonnes and is capable of a static bollard pull of 60.4 tonnes. The Vessel was acquired in March 2013 at a cost of RM46.1 million, and its net carrying value as of 31 July 2025 was RM18.1 million.
Asia Investment and Asset Management Joint Stock Company (“Purchaser”) is a joint stock company incorporated in Vietnam on 11 April 2008. As at 31 December 2024, The Purchaser has a charter capital of VND 300 billion, which was fully paid-up by various individual shareholders. Its directors comprise Mr Nguyen Dinh Hoan, Mr Nguyen Son, Mr Le Minh Hong, Ms Le Thuy Hang and Mr Tran Ngoc Canh.
There are no liabilities, contingent or otherwise, that will remain, nor will any guarantees be given by LFG in relation to the Vessel Disposal.
3. BASIS AND JUSTIFICATION FOR THE CONSIDERATION
The Consideration was arrived at based on a willing-buyer and willing-seller basis, taking into consideration prevailing market values of comparable vessels of similar age and specifications.
4. RATIONALE FOR THE VESSEL DISPOSAL
The Vessel Disposal is part of LFG’s ongoing fleet rejuvenation efforts to modernise and replace its fleet in line with the evolving market demands of the oil and gas industry. This also aligns with LFG’s rebranding and long-term strategy to diversify from being a pure-play Offshore Support Vessel (OSV) player into other vessel asset classes, supporting our pivot towards new markets and strengthening our long-term growth and operational flexibility.
5. UTILISATION OF PROCEEDS
The net proceeds from the Vessel Disposal will be utilised for general corporate purposes and to support LFG’s future growth and strategic initiatives.
6. FINANCIAL EFFECTS OF THE VESSEL DISPOSAL
The Vessel Disposal will not have any effect on the issued share capital or shareholdings of the substantial shareholders of LFG. The estimated gain on disposal (net of associated costs) for the Vessel Disposal of approximately RM10.0 million is expected to contribute positively to LFG’s earnings, net assets, and gearing for the financial year ending 31 December 2025.
7. APPROVALS REQUIRED
The Vessel Disposal, being transacted in the ordinary course of business, is not subject to the approval of the shareholders of LFG or any other relevant government authorities.
8. INTEREST OF DIRECTORS, MAJOR SHAREHOLDERS, AND PERSONS CONNECTED
None of the directors, major shareholders, or persons connected to them has any interest, whether direct or indirect, in the Vessel Disposal.
9. DIRECTORS’ STATEMENT
The Board, having considered all aspects of the Vessel Disposal, is of the opinion that the Vessel Disposal is in the best interests of LFG.
10. ESTIMATED TIMEFRAME FOR COMPLETION
Barring unforeseen circumstances, the Vesel Disposal is expected to be completed by the end of October 2025.
11. DOCUMENT AVAILABLE FOR INSPECTION
The MOA is made available for inspection during normal business hours from Monday to Friday (except public holidays) for a period of 3 months from the date of this announcement at the registered office of LFG at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur, W.P. Kuala Lumpur.
This announcement is dated 8 September 2025.