PETALING JAYA: With the Admiralty Court permission to 1Malaysia Development Bhd (1MDB) to sell Equanimity, the process of finding a buyer for the superyacht can now begin.
One option is to sell the ship at auction, but Prime Minister Tun Dr Mahathir Mohamad has indicated that the government intends to submit tenders for the superyacht instead.
VesselsValue, an online valuation company based in London, explained how this works.
The company, that the value of the Equanimity at US $ 175mil (RM716mil), said the usual sales process of a yacht would start with the seller who turns on a broker.
VesselsValue's head of division Sam Tucker of the superyacht said the broker would sell the ship through various media, including print and online, and via e-mail to its counterparts.
"When buyers present themselves, the survey and negotiation processes begin," he said, adding that ships could be on the market for years before they could be sold.
A special feature of the sale of a yacht is that a bell should sound on the ship when a bid is received.
Dr. Mahathir, during a media conference after inspecting the Equanimity on August 11, he said that the super yacht had a bell that could be called when a bid was made.
Tucker explained that each ship would be longer than 12 meters long, including the 92 meters long Equanimity, must have a bell on board.
The historical goal of having a bell is to mark the time and indicate changes in waiting systems.
Nowadays the most important use is for a bell to comply with international regulations for the prevention of collisions at sea, which is governed by the International Maritime Organization.
In poor visibility, such as fog, a ship must also sound its bell every two minutes.
"A bell is also used to mark a ceremony or opportunity, in this case to accept a bid," Tucker said.
On current market sentiments for superyachts – which are defined as yachts over 24m long – Tucker said no change had occurred, adding that super yachts had a small number of buyers.
He said that a superyacht the Anastasia, which was built by the same shipyard as Equanimity but is slightly smaller at 76 m, recently sold for its asking price of 67.5 mil (RM321mil), in line with market sentiment.
Asked whether it Equanimity could get a sales price close to or equal to the estimated value, Tucker said, provided the ship was in good condition.
"For example, if the ship is sold quickly through the auction, we expect a lower price than if this barrel were brought onto the market and sold organically.
"The fact that this ship has recently been in the press and not necessarily for the right reasons could encourage buyers to submit lower offers," he said.
Keeping the Equanimity in the current state will be an important factor in obtaining a good price.
It is understood that the first year of depreciation for yachts is 20%, another 5% to 10% for the second year, another 5% to 7% for the third year and then about 5% in the following years.
Equanimity (Cayman) Ltd, a company that becomes the owner of the ship and which has links with the fugitive businessman Low Taek Jho, claimed however that the superyacht was kept in bad conditions.
In a statement on Friday, the company claimed it Equanimity runs non-stop on generator power, which according to him was harmful to the ship.
In addition, the company said it Equanimity was docked in a "hazardous environment" in which toxins such as water pollution and nearby smoke would seriously damage it.
Asked about the consequences of the long-term management of a generator power hunt, Tucker said there was no specific risk for the ship.
He said a yacht from EquanimityThe size would require up to three generators plus an emergency generator, and running these 24 hours a day was no problem.
Often a vessel of EquanimityThe size of the ship would struggle to find shore power that was sufficient for the demand for electricity, so that it would run its generators, regardless, he explained.
"As long as they are maintained according to the manufacturer's recommendations, there should be no problem, and the residual value should not be affected," he added.
About the consequences of alleged water and smoke pollution on the Equanimity at the Boustead Cruise Center in Port Klang, where it is currently moored, Tucker said that water pollution would not cause much damage to the yacht.
"The impact it will have on the yacht is that the engineering department needs to clean the sieve cages, the sea chest and filters more often," he said.
The deck staff must also regularly clean the waterline of the ship, a task normally carried out on a ship of this size.
Tucker said smoke and air pollution could negatively affect the condition of a yacht, because it would damage paintwork if it remained unclean.
"As long as the crew cleans the ship routinely, there should be no long-term effect on the ship," he said.