Seroja Invt

Seroja Invt: Subsi PT Pulau Seroja Jaya (PT PSJ) to purchase 3 tugboats and 2 barges from Long Wealth Global Inc, a vessel-owning BVI co for a total consideration of about US$15.2m. Seroja Invt's contribution based on a 48% stake is approx $7.9m. The acq will increase PT PSJ’s current fleet from 60 vessels consisting of 31 tugboats and 29 barges to 65 vessels consisting of 34 tugboats and 31 barges. Co is of view that demand for coal will be strong, furthermore current existing fleet was fully utilised with an additional 4 vessels chartered to meet existing demand. Payment will be on a US$50k per mth basis for 60 mths. Current P/E for Seroja is high at approx 26.4x.