SILK Holdings Bhd (“SILK”) is pleased to announce that its subsidiary, Jasa Merin (Malaysia) Sdn Bhd, had on 30 June 2011 accepted an award of contract extension by Petrofac (Malaysia-PM304) Limited for the provision of one (1) Anchor Handling Tug Supply Vessel.
The primary two-year contract has been extended for a further period of 12 months commencing July 2011. It is envisaged that there shall be no risk other than the normal operational risks and to mitigate this Management will continue to comply with all relevant and applicable health and safety regulations.
The contract extension which is valued at approximately RM10.8 Million will not materially affect the results of SILK for the financial year ending 31 July 2011 but is expected to contribute positively to its earnings and assets for the financial year ending 31 July 2012. The contract extension is not expected to have any effect on the share capital and shareholding structure of SILK.
DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS
None of the Directors or major shareholders or persons connected to the Directors or major shareholders has any direct or indirect interest in the contract extension.
The Board of Directors of SILK is of the opinion the acceptance of the contract extension is in the best interest of SILK Group.
This announcement is dated 30 June 2011.