Mermaid Marine to Buy Jaya Offshore Businesses

MarineLink.com
Tuesday, February 25, 2014

Reutrs - Australian marine logistics firm Mermaid Marine Australia Ltd. said on Tuesday it had agreed to buy the offshore businesses of Singapore's Jaya Holdings Ltd. for $495.96 million in cash to expand its international portfolio.

Mermaid Marine, a Perth-based company which provides vessel and supply base services to offshore oil and gas explorers, will expand its scale in the Southeast Asian and Middle Eastern markets through the acquisition, the company said in a statement.

The acquired businesses include 27 vessels currently operating in South East Asia, the Middle East and East and West Africa, two shipyards in Indonesia and Singapore, and a new build pipeline of six vessels for delivery by 2015.

"The acquisition provides increased geographic diversification for our vessel operations through the addition of a complementary vessel fleet which already has operations in markets across Southeast Asia and the Middle East," Mermaid Marine managing director Jeffrey Weber said.

The deal, subject to shareholder approval and expected to be completed by April, will deliver mid-single-digit earnings growth in full-year 2014, excluding transaction expenses, Mermaid Marine said.

The deal would be funded through a A$317 million equity raising and new debt facilities from Mermaid's existing banks.

Mermaid's underlying net profit fell 25.5 percent from a year earlier to A$24.2 million for the six months ended December, the company said on Tuesday.

The result was in line with Mermaid's guidance, and was attributed to lower drilling activity and delays to commencement of vessel scopes.

Mermaid expects to deliver a full-year net profit in line with the previous year, excluding the Jaya deal's impact, and said the second half would be stronger than the first.

Shares in Mermaid Marine were on a trading halt on Tuesday. The stock has lost 30 percent over the past year, against a 7.6 rise for the broader market. ($1 = 1.1090 Australian dollars)

(Reporting by Maggie Lu Yueyang; Editing by Stephen Coates)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

US Oil Drillers Add Rigs for 4th Week in 5

U.S. drillers this week added oil rigs for a fourth week in five, according to a closely followed report Friday, in the best month of producers returning to the

Norsafe Secures Contract with VARD Group

Norsafe informs it has signed a new contract with VARD Group, and will supply lifeboats complete with davit systems to a series of 15 new vessels.    Topaz Energy

India’s Potential in Offshore Wind Power

The Global Wind Energy Council (GWEC) launched a new report: “Supply Chain, Port Infrastructure and Logistics Study” for offshore wind development in the states of Gujarat and Tamil Nadu in India.

News

US Oil Drillers Add Rigs for 4th Week in 5

U.S. drillers this week added oil rigs for a fourth week in five, according to a closely followed report Friday, in the best month of producers returning to the

Vale Sells 3 Valemax Iron Ore Ships to ICBC

Brazil's Vale SA said it has sold three of its giant "Valemax" iron ore ships to a group led by Industrial and Commercial Bank of China, continuing efforts to unload

Fincantieri Launches Silver Muse

Silver Muse, the new ultra-luxury cruise ship which Fincantieri is building for the ship owner Silversea Cruises, was launched at Fincantieri’s shipyard in Genoa Sestri Ponente.

Mergers & Acquisitions

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

NAT Takes Delivery of Suezmax, Earnings Capacity Up

Nordic American Tankers Limited ("NAT" or "the Company") announced that it today took delivery of a Suezmax vessel, the Nordic Sirius, built at a shipyard in Japan.

UASC and Hapag-Lloyd Merger in the Last Leap

A merger between United Arab Shipping Company (UASC)  and German container shipping line Hapag-Lloyd will create a shipping group that is the 5th largest in the

 
 
Maritime Standards Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1194 sec (8 req/sec)