Singapore-based Beng Kuang Marine has entered into a legally binding joint venture agreement with Epsilon Navigation to operate a special purpose vehicle known as Offshore Collective.
This vehicle will focus on the investment and management of marine assets within the offshore energy sector.
The parties intend to enlarge the initial issued share capital of the entity from SG$50,000 ($37,213) to SG$1.4 million. Under the agreement, Beng Kuang Marine and Epsilon Navigation will each hold a 50 per cent equity interest in the venture.
The partnership also covers any subsequent marine, offshore, vessel-related, or maritime logistics projects that the two companies may mutually agree to pursue through the vehicle.
According to Beng Kuang Marine, Offshore Collective is designed to implement a marine asset monetisation strategy that involves building, chartering, optimising, and reinvesting in various assets.
A definitive shareholder agreement relating to the special purpose vehicle is expected to be finalised within 60 days of the initial agreement. The company stated that the provisions contained in the joint venture agreement shall form the basis of this upcoming document.
Beng Kuang Marine remarked that the establishment of the joint venture is expected to have a positive impact on its earnings per share and net tangible assets for the financial year ending December 31, 2026.
