Malaysia International Shipping Corp Bhd shareholders have approved the company's acquisition of American Eagle Tankers (AET) from Neptune Orient Lines Ltd. (NOL), MISC chairman Hassan Marican said today.

"In general, it (shareholders meeting) went very well. At the end of the meeting, the acquisition of AET was approved by the shareholders," Hassan told reporters.

MISC will pay US$445 million in cash for AET and it will also fund a US$75 million dividend from AET to NOL.

MISC is the largest owner and operator of liquefied natural gastankers in the world.

State-owned national oil and gas company Petroliam Nasional Bhd (Petronas) owns some 62.4 percent of MISC.

Reasonable price

Hassan said the increase in the company's gearing from about 0.44 times now to 0.66 times as a result of the acquisition is not a concern.

"I think our gearing remains strong and I think there is no concern... it's still within the acceptable limit not only set internally by us but also in so far as the average industry gearing ratio (is concerned), we are comfortably inside the ratio," he said.

Hassan said the acquisition will enable MISC to rebalance its portfolio of operations from its current strength in LNG tankers.

Commenting on the purchase, Hassan said "I think the price we paid is reasonable."

MISC was still negotiating the sale of its 36.8 percent stake in Affin Merchant Bank Bhd. to KAF Group, MISC managing director and CEO Mohd Ali Yasin said.

Mohamad Ali said the negotiations have not been finalised. Affin Holdings Bhd holds a 63.2 percent stake in Affin Merchant. - AFP