There are apparently still companies prepared to invest in the shipping sector, with R&A Telecommunication Group, a troubled Malaysian telecoms company planning to buy a shipping company in an effort to improve its financials.

In a stock market release R&A Telecommunications said it is acquiring Semua Shipping Sdn Bhd (SSSB), which is 49% owned by oil and gas firm Sumatec Resources for MYR150m ($37.5m).

The acquisition is part of the loss-making telecommunications company’s regularisation plan to maintain its listing status. R&A Telecommunications plans to raise the funds through the issuance of new shares at an issue price of 10 sen per share.

Semua Shipping is involved in shipping and the provision of shipping-related services. It owns six 8,000 dwt product tankers, and all the vessels currently have long-term charters with Shell Malaysia.

R&A Telecommunication triggered Bursa Malaysia's Guidance Note 3 (GN3) May last year when auditors expressed a disclaimer opinion in the company’s audited financial statements for the financial year ended 31 December 2014.

In the fourth quarter of 2015, the company said its prospects in the telecommunications industry was limited to poor access to funds .

Last July, Sumatec Resources had said it had identified a potential buyer for its stakes in Semua Shipping but did not reveal the identity at that time.

Source: seatrade-maritime.com