Asia Energy Logistics to liquidate Ocean Jade Investment
Hong Kong-listed bulk carrier owner Asia Energy Logistics (AEL) has reported that the board has agreed to liquidate the wholly-owned subsidiary Ocean Jade Investment.
Ocean Jade is a ship investment company of AEL and has a 50 percent stake in a joint venture with Waibert Navigation, a subsidiary of GNG Ocean Shipping in China. The joint venture is operated by two 35,000 dwt handysize bulk carriers, Hai Bao and Hai Kang.
According to AEL, the joint venture had intended to purchase a total of four vessels, but had not acquired the remaining two vessels due to the continued weak conditions of the shipping industry, and the share of the cumulative losses of the joint venture had surpassed its expenditure by the end of 2019.
AEL claims that the liquidation of Ocean Jade is in the best interests of the company and that its owners, as a subsidiary, no longer act as a viable investment opportunity with competitive prospects for the group.
AEL plans to report a gain of approximately HK$169 m ($21.8 m) from the group's deconsolidation of Ocean Jade.
Maritime Business World