Mermaid Maritime yesterday announced the disposal of its 22.5% interest in Allied Marine & Equipment Sdn. Bhd., a provider of subsea engineering services to the offshore and gas industry. Mermaid will receive RM75,537,524 for its stake in the company (approximately US$23.4 million), which will result in a gain of about RM38,388,453, a profit of almost US$12 million.
There is certainly serious "house cleaning" going on in Mermaid Maritime, and the proceeds of the sale (expected 15 September 2010) will add to the substantial cash balance. As an investor in the company, we can only hope (and pray) that the management will use the cash well.