MISC’s recent announcement that it has entered into an agreement with First Financial Corporation to dispose 32 of its bulk vessels for USD740 Million (RM2.8 billion) is viewed positively by MARC. The disposal would effectively reduce MISC’s exposure to the volatility of the bulk vessel sector as well as enabling the Group to further strengthen its position as a premier player in the energy-related transportation sector. The sale proceeds are expected to be utilized for retirement of the Group’s high interest bearing debts and capital expenditure requirements. The sale is expected to result in a gain on disposal of USD440 Million (RM1.7 billion). The finalization of the disposal is expected to be completed by 31 March 2005.