KUALA LUMPUR: Scomi Marine Bhd expects to gain S$61.5 million from the sale of its 29.07% stake in CH Offshore Ltd Falcon Energy Group Ltd for total cash consideration of S$143.5 million.

It said on Feb 5 the stake comprised of 205 million shares while its original cost of investment in CH Offshore was S$82.0 million on Sept 30, 2005.

The proposed disposal would enable Scomi Marine to raise S$143.5 million (RM348.7 million) to repay borrowings and/or working capital and defraying the expenses. Upon repayment of borrowings, the group's net gearing position is expected to improve.

To recap, CH Offshore was incorporated in Singapore on March 31, 1976 as a private company. On Feb 13, 2003, it was converted into a public company and listed on the Singapore Exchange on Feb 28, 2003.

CH Offshore owns and operates vessels to support and service the offshore oil and gas industry mainly in Indonesia, Australia, Latin American and Middle East. Its offshore support services are involved in offshore exploration, development and production activities.

For the financial year ended June 30, 2009, CH Offshore posted an audited consolidated profit after tax of US$56.2 million and its audited net assets as at June 30, 2009 was US$187.4 million.