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The Board of Directors of ASL Marine Holdings Ltd. (the "Company" or "ASL Marine") wishes to announce that the Company's wholly-owned subsidiary, ASL Project Services Pte Ltd ("APS") in joint collaboration with Hong Kong River Engineering Company Limited ("HKR"), has on 19 July 2005 incorporated HKR-ASL Joint Venture Limited (the "Joint Venture" or "HKR-ASL") in Hong Kong with a registered capital of HK$1 million, for the purpose of engaging principally in the provision of marine transportation services, shipping agency, marine related engineering works and other related services in China.
APS and HKR will each hold a 50% share in the Joint Venture and have equal board representation.
HKR-ASL is established to tap on the marine transportation business opportunities arising from the increased coastal capital construction and rapid infrastructure development in China.
The Board of Directors is of the view that the Joint Venture is an extension of the Group's existing core businesses. Further, the alliance is synergistic as HKR, which is in the business of providing engineering services, will be able to complement the Group's capabilities and enhance the competitiveness of the Joint Venture.
For the purposes of the HKR-ASL's proposed business of marine transportation services in China, it is intended that HKR-ASL will acquire appropriate marine vessels from ASL Marine, its subsidiaries or appropriate third parties. The capital injection by shareholders is intended for working capital and as partial funding for HKR-ASL's acquisition of such marine vessels.
The Group's investment in HKR-ASL will be funded through internal resources.
The net tangible assets and earnings per share of the Company for the financial year ending 30 June 2006 are not expected to be materially affected by the above transaction.
As far as the Directors of ASL Marine are aware, none of the Directors or controlling shareholders of ASL Marine has any interest, direct or indirect, in the above transaction other than through their shareholdings in ASL Marine.
BY ORDER OF THE BOARD
Ang Kok Tian
Chairman and Managing Director
10 August 2005
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