Singapore's Jurong Port to take over Lim family's stakes in Universal Terminal-sources

Times Universal group

09/02/2021 09:26

By Chen Aizhu and Jessica Jaganathan
    SINGAPORE, Feb 9 (Reuters) - Singapore port operator Jurong
Port is set to take over the shares in a major oil storage
terminal in the city state from the Lim family behind collapsed
oil trader Hin Leong, three sources with knowledge of the matter
told Reuters.
    The deal marks the sale of the crown jewel among oil and
shipping assets owned by oil tycoon Lim Oon Kuin, his son Evan
Lim Chee Meng and daughter Lim Huey Ching. 
    It comes nearly a year after Hin Leong, once Asia's largest
oil trader, racked up some $4 billion in debt and entered court
restructuring, followed by Ocean Tankers and Xihe Group also
owned by the Lim family.  urn:newsml:reuters.com:*:nL3N2CB0XA
    Government-owned Jurong Port is set to take over the Lim
family's stakes in the terminal, the sources said, declining to
be named as they are not authorised to speak to the media. The
Lim family managed and owned 41% of Universal Terminal through
Universal Group Holdings.
    "Jurong Port's participation was well received by existing
investors as it's a neutral partner as compared with commercial
parties such as a trading house," said one of the sources.
    The investment details were not immediately clear but a
previous sale of a stake in the terminal in 2016 valued the
whole terminal at more than $1.5 billion, industry sources said
at the time.    
    China's state energy company Sinopec had previously been in
talks to buy the Lim family's stakes.  urn:newsml:reuters.com:*:nL3N2CA3MC
    Some of the fuel stored at the terminal is being claimed by
creditors including Sembcorp Cogen Pte Ltd, a unit of Sembcorp
Industries  SCIL.SI , and Cooperative Rabobank U.A. Singapore.
 urn:newsml:reuters.com:*:nL3N2GJ0QO
    Jurong Port has appointed an interim chief executive for the
terminal and has started marketing the storage space informally,
said two other sources. 
    Jurong Port and representatives of the Lim family did not
immediately reply to Reuters' emailed requests for comment.   
    PetroChina International (Singapore) owns 25% of the
terminal while MAIF Investments Singapore, a unit of Australian
investment bank Macquarie Group  MGQ.AX , holds the remaining
34%.  
    The terminal, with 2.33 million cubic metres of oil storage
capacity and deepwater berthing facilities that allows two
supertankers to dock at the same time, is regarded as a most
prized asset invested in by the Lim family. The family also owns
about 130 oil tankers, some of which are being sold to pay down
debts.  urn:newsml:reuters.com:*:nL8N2GE04H
    Jurong Port, a fully owned subsidiary of Singapore's
industrial property developer and planner JTC Corp, entered the
oil storage business in 2019 in a tie-up with independent
storage operator Oiltanking. 
    It wants to diversify its revenue as volumes passing through
its cement and steel terminals fell amid a slowdown in the
construction and shipbuilding sectors, its chief executive has
said. 

 (Reporting by Jessica Jaganathan and Chen Aizhu
Editing by Florence Tan and David Evans)
 ((Jessica.Jaganathan@thomsonreuters.com; +65 6870 3822; Reuters
Messaging: jessica.jaganathan.thomsonreuters.com@reuters.net;
Twitter: https://twitter.com/j3ssi3))