Kim Heng (SGX:5G2) signed a letter of intent to divest a 70% stake in subsidiary Bridgewater Offshore to Weft + Water for $26.8 million, according to a Friday filing with the Singapore Exchange.

The buyer also has the option to acquire a further 10% shares for $8,888.

Following completion, Weft + Water will have the economic and voting interest in 80% of the unit which charters vessels and holds six offshore support vessels.

The offshore and marine services company will utilize proceeds from the divestment to strengthen its balance sheet, cut debt and retain core offshore marine strengths.

Shares of the company surged nearly 9% in Friday trading.