Samudera Shipping Line Ltd. Invests S\$7.3 Million in EKH Pte. Ltd. Convertible Note

Key Highlights of the Investment

• Samudera Shipping Line Ltd. (“Samudera” or the “Company”) has entered into a subscription agreement with EKH Pte. Ltd. (“EKH”) for an unsecured convertible note worth S\$7,300,000.
• This transaction is classified as a non-discloseable transaction under Chapter 10 of the SGX-ST Listing Manual, as the relative figures for the rules are low.
• EKH is an unrelated third party and operates 19 container depots across Singapore, China, Hong Kong, Malaysia, Thailand, and Vietnam, making it a significant player in the container logistics industry in the ASEAN region and the People’s Republic of China.

Details of the Subscription

• Principal Amount: S\$7,300,000, payable in cash from Samudera’s internal resources.
• The subscription price was determined on a willing-buyer, willing-seller basis, based on EKH’s financial position and strategic value.
• Interest Rate: 3% per annum, payable annually in arrears.
• Maturity: 12 months from issue date, with an option for EKH to extend for an additional 12 months.
• Conversion Option: The note is convertible into ordinary shares of EKH at a pre-determined formula, or redeemable by EKH upon maturity.
• Use of Proceeds: EKH will use the funds for general working capital and for the construction and development of an integrated logistics hub in Singapore.

Financial Impact and Shareholder Considerations

• Net Tangible Assets (NTA): No material effect on the Group’s consolidated NTA per share, as the note will be recorded as a financial asset.
• Earnings Per Share (EPS): The interest income from the note (3% per annum) is not expected to have a significant impact on the Group’s consolidated earnings.
• Relative Figures:
  • The net profits attributable to the assets acquired represent only 0.2% compared to the Group’s net profits.
  • The aggregate value of the consideration given is 1.3% of the Company’s market capitalisation as of 24 December 2025.

  These figures confirm the transaction is relatively small compared to Samudera’s overall financial position.

Strategic Rationale

• EKH is a market leader in container depot operations, an essential segment of the shipping supply chain, providing storage, handling, repair, and maintenance for empty containers.
• This investment allows Samudera to gain exposure to the growing container logistics sector and potentially benefit from EKH’s expansion, especially with the development of an integrated logistics hub in Singapore.
• The Board asserts that the Subscription is in the best interests of the Company and its shareholders, aligning with Samudera’s strategic focus on logistics and supply chain.

Other Important Information for Shareholders

• No director or controlling shareholder of Samudera has any interest, direct or indirect, in the Subscription.
• No person will be appointed as a director of Samudera in connection with this transaction, and no service contract is involved.
• A copy of the Subscription Agreement is available for inspection at the Company’s registered office for three months from the announcement date.

Potential Share Price Impact

• While the transaction is not expected to have an immediate material impact on Samudera’s earnings or net tangible assets, it signals the Company’s strategic intent to diversify and expand its interests in container logistics.
• Should EKH’s integrated logistics hub project succeed, or if the convertible note is exchanged for equity in a growing logistics player, there could be longer-term positive implications for Samudera’s growth prospects and valuation.
• Investors should continue to monitor developments related to EKH and the logistics hub, as these may become price-sensitive in the future.

Disclaimer: This article is for informational purposes only. It does not constitute investment advice, and investors should conduct their own due diligence or consult professional advisers before making investment decisions. The author and publisher are not liable for any losses incurred from reliance on the information provided above.

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