INTRODUCTION

Reference is made to the Company’s announcements dated 2 September 2025 on the disposal of its wholly owned subsidiary, Alam Maritim (M) Sdn. Bhd. (“AMSB”) vessel, Setia Teguh (“Vessel”) (“Disposal”).

INFORMATION ON THE VESSEL

The specifications of Setia Teguh are as follows:

The market value of the Vessel has been determined by an independent professional valuer, Armal Marine and Offshore Sdn Bhd, based on three internationally recognised methodologies, namely the Sale Comparison Approach, which considers recent transactions of comparable AHTS vessels; the Cost Approach, which estimates the replacement cost of the vessel adjusted for depreciation; and the Income Approach, which assesses the vessel’s earnings potential from charter and offshore operations. The adoption of these methodologies provides a fair and reasonable basis for arriving at the Vessel’s market value.

INFORMATION ON SALE AGREEMENT OF THE VESSEL

AMSB and Shivansh Offshore and Marine Services Pvt. Ltd. (“Shivansh”) entered into a Memorandum of Agreement (“Agreement”) dated 11 July 2025 for the disposal of the Vessel. Shivansh is a privately held company whose shareholding structure comprises Mr. Vikas K. Dubey (90%) and Mrs. Pooja V. Dubey (10%).

The salient terms of the Agreement are listed in Appendix 1.

COMPLETION OF DISPOSAL

The protocol of delivery of the Vessel was signed on 19 August 2025. However, the Vessel was physically handed over and sailed out on 30 August 2025 due to administrative requirements.

REASON FOR DELAY IN ANNOUNCEMENT

The Company did not make an immediate announcement upon signing of the Agreement as the Disposal involved an ageing vessel that was due for drydocking repair. Additional time was required for inspections of the Vessel, while the Buyer needed to meet Indian regulatory requirements for importation and re-flagging. The Buyer also had to obtain satisfactory inspection results and compliance confirmations before proceeding with the Agreement. The Company was therefore of the view that an announcement should only be made once completion was substantially certain to ensure accuracy and avoid misleading disclosure.

LIABILITIES

There are no liabilities, including contingent liabilities or guarantees, retained by the Company nor AMSB arising from the Disposal. The Vessel was free from all encumbrances at the time of delivery.

RATIONALE FOR THE DISPOSAL

The Disposal is undertaken in the ordinary course of business and forms part of the Group’s strategy to scale down its offshore support vessel (“OSV”) segment and focus on subsea activities. In total, the Group has disposed of five (5) OSVs, all of which were more than 15 years old, no longer able to secure contracts in Malaysia and would otherwise require significant capital expenditure for drydocking and repair. Following these disposals, the Group no longer owns any OSVs. The Disposal will enable the Group to reallocate resources towards its subsea operations.

FINANCIAL IMPACT OF THE DISPOSAL

The Disposal is expected to result in an estimated gain of approximately RM2.4 million, derived from the sales proceeds of RM7.5 million (based on the average exchange rate of USD1: RM4.16 as quoted by Affin Bank Berhad on payment dates) less the Vessel’s net book value (“NBV”) of approximately RM5.1 million.

UTILISATION OF PROCEEDS

The proceeds arising from the Disposal will be utilised to meet the operating expenditure requirements of ALAM and its subsidiaries, and are expected to be fully utilised within twelve (12) months from the receipt of the Disposal proceeds. 

INTEREST OF DIRECTORS, MAJOR SHAREHOLDERS AND PERSONS CONNECTED

None of the directors, major shareholders of ALAM and persons connected with them have any interest, direct or indirect, in the Disposal.

HIGHEST PERCENTAGE RATIO

The highest percentage ratio applicable to the Disposal pursuant to Paragraph 10.02(g) of the Listing Requirements is approximately 20.7%, calculated based on the Disposal Consideration divided by the market value of all the ordinary shares of the Company of approximately RM36.46 million, based on the 5-day Volume Weighted Average Market Price of AMRB shares up to 1 August 2025, being the Last Market Day of RM0.238.

DOCUMENTS AVAILABLE FOR INSPECTION

The Agreement and the Valuation Report are available for inspection at the registered office of the Company during normal business hours from Mondays to Fridays (except public holidays) for a period of three (3) months from the date of this announcement.

This announcement is dated 8 September 2025.