OOIL spends $1.7b on ships

PUBLISHED : Tuesday, 31 August, 2004, 12:00am
UPDATED : Tuesday, 31 August, 2004, 12:00am

Orient Overseas (International) Ltd, controlled by the family of Chief Executive Tung Chee-hwa, has ordered four vessels worth a combined HK$1.72 billion to expand its container fleet.

Four of the company's Marshall Islands subsidiaries entered into agreements yesterday with South Korean shipbuilder Samsung Heavy Industries to construct the 4,500-teu (20-foot equivalent unit) container vessels, which will be delivered between the second quarter of 2007 and the first quarter of 2008.

OOIL hopes to arrange external financing soon for about 80 per cent of the total purchase price of US$221.2 million, which is equivalent to about 6.77 per cent of the firm's consolidated assets at the end of June.

The rest would be funded from internal resources.

The purchase will be payable in five instalments, with the first payment due three days after the signing of the contracts and the last payment to be made upon vessel delivery.