TAS

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OTHERS TERMINATION AGREEMENTS

TAS OFFSHORE BERHAD

Type Announcement
Subject OTHERS
Description
TERMINATION AGREEMENTS

The Board of Directors of TAS Offshore Berhad (“TAS” or “the Company”) wishes to announce that TA Ventures (L) Ltd (“TAV”), a wholly owned subsidiary of the Company, had on 17 July 2020 signed Termination Agreements with Guangzhou Hangtong Shipbuilding and Shipping Co. Ltd. (“HangTong”) and Jiangmen Hangtong Shipbuilding Co. Ltd. (“Jiangmen”) where all parties mutually agreed to terminate the respective shipbuilding contracts for 16 vessels.

TAV, HangTong and Jiangmen mutually agreed that upon execution of the said Termination Agreements, all parties shall irrevocably and unconditionally release and discharge each parties from all obligations, liabilities, claims and demand of the past, present and future in connection with the said shipbuilding contracts.

The termination of the shipbuilding contracts are based on mutual agreement between TAV, HangTong and Jiangmen after taking into consideration the following factors :

1.           The low oil price had resulted in a decrease in demand of the offshore support vessels and adversely affected the sale of this type of vessel.

2.           The onset of COVID-19 pandemic and its global spread has exacerbated the subdued demand of oil and will have a significant negative impact on oil price.

The Termination Agreements will have material effect on the net asset per share and earnings per share of TAS. However, it will not have any material impact on the going concern of TAS.

None of the Directors and/or major shareholders of TAS and/or persons connected with them has any interest, whether direct or indirect, in the Termination Agreements.

This announcement is dated 17 July 2020.






Announcement Info

Company Name TAS OFFSHORE BERHAD
Stock Name TAS
Date Announced 17 Jul 2020
Category General Announcement for PLC
Reference Number GA1-17072020-00056