BakerTech

BakerTech: Accounting treatment of 15% indirect stake in PPL Shipyard now in focus. The point of contention is whether a JV agreement signed in 2001 is still in force. This affects the expected cash payout to co’s sh/h after the sale of its PPL stake for $116.3m to a consortium which includes Yangzijiang. As of yet, the issue has not been resolved.

Both SembMarine and former shareholder PPLH enjoyed equal board representation and voting rights but SembMarine has argued that the 50-50 voting split was moot after it increased its stake to 85% in 2003. On BakerTech’s books, the accounting treatment of PPL Shipyard changed from an “available-for-sale” asset to a JV in 2010 after legal proceedings commenced which affect the way BakerTech views PPL Shipyard in terms of ownership