KUALA LUMPUR (July 10): Lianson Fleet Group Bhd (KL:LFG) is acquiring two Ultramax-class bulk carriers for US$52.32 million (RM213.2 million) in cash.
The marine logistics service provider said the vessel will be Lianson Fleet's first Ultramax-class bulk carriers, which is expected to strengthen the group’s earnings visibility, taking advantage of strong current charter rates and high utilisation rates.
“Demand and charter rates for bulk carriers remain robust, supported by regional trade flows of bulk cargo and commodities.
"Elevated tonne-miles are also observed, driven by cargo being rerouted over longer distances due to trade dislocations, canal constraints, and regional supply-demand imbalances,” Liaison Fleet said in a bourse filing on Friday.
The acquisition of the vessels will be funded through a combination of internal funds and bank borrowings.
As at March 31, 2026, Lianson Fleet had cash and bank balances of RM157.55 million, while total borrowings stood at RM328.83 million, comprising RM154.41 million in short-term borrowings and RM174.42 million in long-term secured term loans.
The company is in discussions with lenders to part finance the vessels’ consideration, to optimise the capital structure of the group and preserve financial flexibility.
The acquisition will be undertaken by the group's wholly owned subsidiary, Lianson Fleet Pte Ltd, through two separate memorandum of agreements signed on Thursday with Chinese sellers for the purchase of vessels MV Tian Mu Shan and MV Yan Dang Shan.
The acquisition is expected to contribute positively to the company’s earnings for the financial year ending Dec 31, 2026 and beyond through charter income, although gearing is expected to increase if bank borrowings are secured to partly finance the purchase.
The transaction is expected to be completed by October 2026.
At Friday’s noon market break, Liaison Fleet’s share price was traded unchanged at RM1.64, giving the company a market capitalisation of RM1.94 billion. The stock has risen over 70% from a year ago, but has fallen 25% from this year's peak of RM2.20.