Ow Chio Kiat buys Boheme

Ow Chio Kiat-led Singapore Shipping Corp (SSC) has bought the 67,264-gt PCTC Boheme (built 1999) for $50m.

Singapore Shipping is paying $50m for the Boheme

SSC said the deal, which is expected to be completed by late April, was conditional on its ability to arrange financing on suitable terms.

The purchase is expected to be funded by internal resources and bank borrowings, the Singapore-listed shipowner said.

The Boheme was one of five Wallenius ships lengthened by 28.8 metres to boost capacity to over 7,200 vehicles in 2005 at Vietnam’s Hyundai-Vinashin Shipyard.

“We patiently kept our powder dry all through the recent global financial crisis,” said SSC executive chairman Ow Chio Kiat

“The purchase presents an excellent opportunity to strengthen our fleet of car-carriers, and is in line with our strategy to re-fresh and acquire suitable tonnages, backed by top quality charterers and attractive returns.”

“The Boheme will be a good replacement for the much older and smaller car carrier that the group disposed of in December 2009.”

“Moreover, Wallenius’ 15-year time-charter commitment for the Boheme will help ensure a steady stream of income for the SSC Group.”

“This investment alone should see SSC’s fleet through 15 years of continuous employment and will be a fillip to SSC’s efforts to renew our fleet.”

In late 2005 SSC took advantage of high resale values to offload ships in its fleet as it opted to concentrate on being a car carrier operator.

Investors reacted positively to the news sending SSC's shares up 5.6% in early afternoon trading to SGD0.28 ($0.20) per share.

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