Singapore Shipping Corp. Ltd. (SGX:S19) entered into a sale and purchase agreement to acquire SSC Shipping Agencies Pte Ltd from MYP Ltd. (SGX:F86) for SGD 10 million in cash SGD on January 8, 2013. The acquisition will be funded through the internal resources, and on completion, the consideration shall be satisfied by Singapore Shipping in cash. MYP also entered into agreement with Singapore Shipping to sell its interest in Hai Poh Terminals Pte Ltd, Island Line Pte Ltd and Nanyang Maritime (S'pore) Pte Ltd. SSC Shipping Agencies reported for the year ended March 31, 2012, net profit of SGD 2.48 million and net tangible asset value of SGD 6.64 million.

Transaction is subject to conditions including financial, business and legal due diligence, approval of the Board of Directors and shareholders of MYP and Singapore Shipping, approval of Board of Directors of SSC Shipping Agencies, regulatory approval. If any of the conditions precedent is not fulfilled by any party on or before March 31, 2013 or such other date as agreed in writing, the agreement shall lapse. MYP Ltd. intends to use the entire of the net cash proceeds for the purposes of investing into real estate and real estate-related assets. MYP Ltd. is expected to record a gain of SGD 4.8 million from the divestment.

As on March 7, 2013, the long stop date of the transaction has been extended from March 31, 2013 to April 30, 2013. The transaction was unanimously approved by Directors of MYP and the Directors recommended the shareholders to approve the transaction on March 21, 2013. The extraordinary general meeting will take place on April 5, 2013. The transaction is expected to increase Singapore Shipping Corp.'s earnings per share after the acquisition. The transaction was approved by shareholders of MYP Ltd. on April 5, 2013.