MARC said today that its AA- rating on SGB is not affected by the company’s recent announcements in relation to the following:

1. SGB’s share sale agreement with MTrans Transportation Corp Sdn Bhd (MTC) to acquire 10,400,002 ordinary shares in MTrans Transportation Systems Sdn Bhd (MTrans), representing 40% of the issued and paid-up share capital of MTrans from MTC, for a total purchase consideration of RM25 million.
2. Proposed divestment of 19.9% in the respective classes of the share capital in Scomi Oilfields Limited to Standard Chartered Private Equity Limited for a total cash consideration of USD 99.50 million.
3. Deferral of the proposed listing of KMC Oiltools Bermuda Limited until further notice.
4. Disposal of a 100% equity in Scomi Transportation Solutions Sdn Bhd to ADL International Group Holding for RM3.8 million.

MARC views the above mentioned corporate exercises to have no immediate impact on SGB’s credit quality.