Achieva Seeks To Buy ONE°15 Marina Club, Charter Company
Published: Thursday, 14 May 2015
Tech firm Achieva is seeking shareholder approval to acquire two marina firms for S$21 million in a bid to boost flagging revenue.
It wants to buy SUTL Marina Development and yacht chartering business One15 Luxury Yachting from SUTL Global by issuing new shares, it announced yesterday .
SUTL Marina Development owns and operates the ONE°15 Marina Club at Sentosa Cove.
Caption: Achieva chief Arthur Tay with his mega yacht Hye Sea II. He says SUTL Marina Development, which owns and runs ONE°15 Marina Club and yacht chartering business One15 Luxury Yachting, have strong track records.
The $21 million figure stands at the lower end of an independent valuation of the companies, which puts the value between $20.2 million and $23.4 million, said the Achieva statement.
The purchase will involve Achieva, an IT distributor and solutions provider, issuing 341.46 million new ordinary shares at 6.15 cents each - a premium to its closing price of five cents yesterday.
Achieva is already an associate company of SUTL Global, which holds 25.29 per cent of Achieva's shares. With the allotment of new shares, SUTL Global will hold about 54.8 per cent, effectively making Achieva its subsidiary.
If Achieva shareholders back the proposal at an extraordinary general meeting next month, Achieva will be renamed as SUTL Enterprise Limited to reflect its new identity.
Mr Lew Syn Pau, Achieva's non-executive chairman and independent director, told a briefing yesterday that the firm has been laden with bad debts.
Revenues have been falling over the past five years and the firm incurred net losses in four of those years.
Mr Lew added that intense competition and a slowdown in IT-related markets would continue to impact Achieva.
Diversifying into the marina industry would allow it to gain from the SUTL Global units' and the industry's burgeoning potential, he said.
Achieva executive director and chief executive Arthur Tay cited the two units' strong operating track record, noting that between the 2012 and 2014 financial years, net profit grew at a compound annual growth rate of 70 per cent. He also pointed to Asia's growing demand for marinas and yachts amid an increase in the number of wealthy individuals.
In particular, Singapore faces an acute shortage of berths, with some boat owners having to spend 18 months on a waiting list.
SUTL Marina Development manages 270 berths on Sentosa and has plans to roll out a further 400 to 600 berths. It has provided marina consultancy and development services to marina resorts in China and Malaysia and aims to engage in similar projects in other parts of Asia.
Photo: YachtsXL / Michael Denker
– This article was published by The Straits Times in Singapore.