Seroja Investments has agreed to sell its shipping business after receiving what it described as an “attractive offer” for the assets.

Under the sale and purchase agreement (SPA), Seroja said it will sell the entire issued and paid up share capital of Trans LK Marine Pte for $32.16m.

Its activities comprise the provision of marine transportation including the chartering of tugboats and barges primarily to transport dry bulk freight such as thermal coal, sand, and other quarry materials.

“The company is of the view that the consideration of $32.16m is attractive,” Singapore-listed Seroja Investments said in a statement.

“This translates to SGD 0.1142 (8 US cents) per share which is a 278% premium over the volume weighted average price of the shares of the company on the last market day when the shares were traded preceding the date of the SPA.”

Seroja said the estimated profit on the proposed disposal is about $4.5m based on the consideration and the book value of the business.

It's directors said they are of the view that the disposal presents a "good opportunity to unlock value" for the shareholders and is in the best interests of the company.

The company said it will receive net proceeds of about $32m after deducting all costs and expenses.

"With a strong balance sheet, the company will be able to source for investment opportunities that will provide sustainable long term growth," it said.