Ezra to Consolidate EMAS Marine into EOC

By Eric Haun
Thursday, July 10, 2014

Ezra Holdings Limited today announced plans to consolidate its Offshore Support Services division, EMAS Marine, into its associated company, EOC Limited, which is listed on the Oslo Børs, Norway.

Upon completion of the transaction, the enlarged EOC Group will be one of the largest offshore support operators in Asia Pacific by asset value, managing an offshore services platform comprising over $1 billion in offshore support assets. Its diverse and versatile fleet of 50 offshore vessels is among the youngest in the region. The fleet has a combined bollard pull of almost 4,000 tons, more than 37,000 dwt and a total of almost 350,000 BHP, making it one of the strongest and most powerful in the region, with capabilities to operate globally at ultra-deep water depths.

“By bringing together EMAS Marine and EOC, Ezra has created an offshore solutions provider in the region that is ahead of its peers in terms of fleet capabilities,” said Lionel Lee, Ezra’s Group CEO and Managing Director.

“This move allows us to capitalize on investors’ growing interest for exposure in the different segments of the offshore oil and gas sector, and at the same time, meet increasing demand for newer offshore support vessels (OSVs) with large deck areas, accommodation capacity, bollard pull, and dynamic positioning capabilities among our clients.

“By combining our established platform of resources, talent and technical capabilities, together with EOC’s strategy to expand into the offshore accommodation space, we believe it is now time to unlock value and consolidate our business units.”

Lee Kian Soo, Ezra’s Group Founder, Non-Executive and Non-Independent Director, said, “This is a significant milestone for us. When we started in 1992, we were a simple ship operator. Seven years later, we obtained our first vessel. Today, I am pleased to present to the market this new platform which manages 50 vessels. Through the years, we have gained international recognition for our strong execution capabilities and operational flexibility. I believe that with our enlarged platform, we can capture a greater market share and serve our clients better.”

The enlarged EOC fleet boasts modern and technologically advanced vessels with strong deepwater capabilities to meet growing demand arising from increased offshore oil and gas exploration and production activities globally. It will leverage EMAS Marine’s extensive execution capabilities and established track record in asset management to strengthen its position as a leading offshore solution provider, offering a suite of offshore support services, including, OSVs, accommodation, construction and resource management.

With a highly experienced and committed independent management team helming the enlarged EOC Group, Ezra’s management will also be able to focus on developing the fast-growing Subsea Services business, which has become the Group’s main revenue generator.

The proposed consolidation
Ezra and EOC have agreed on a consideration of $520 million, comprising $150 million in cash and $370 million by the issuance of approximately 280.1 million new EOC shares to Ezra based on the issue price of NOK 8.18 per new share.

The consideration was arrived at on a willing-buyer, willing-seller basis and takes into account, among others, the track record and market position of EMAS Marine and business rationale for the enlarged entity. In EOC’s announcement, Fearnley Securities AS, the independent financial adviser to the board of directors of EOC, has rendered a preliminary conditional opinion that the terms of the proposed consolidation are fair to the EOC shareholders.

DBS Bank Ltd’s Strategic Advisory unit has been appointed as Ezra’s financial adviser in relation to the proposed consolidation exercise.

Proposed secondary listing on SGX-ST
In connection with the proposed consolidation, EOC is considering a potential secondary listing and quotation of all the shares of EOC on the Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST). Further, it is contemplated that Ezra will undertake a secondary sale of shares of up to $20 million in the Norwegian market directed at EOC’s existing shareholders in the Norwegian Central Securities Depository (VPS), at the same price as the proposed offering.

The proposed secondary listing is led by DBS Bank Ltd, one of Asia’s largest banks. DNB Bank ASA, Norway's largest financial services group, has been appointed as financial adviser to EOC for the transaction.

The proposed secondary listing will allow EOC to leverage the EMAS branding in Asia for greater access to competitive sources of debt and equity and is expected to improve the overall trading liquidity in EOC shares.

The proposed offering is subject to, among other things, approval from the SGX-ST and the shareholders of EOC and the prevailing capital market conditions. The timing of the Extraordinary General Meetings of Ezra and EOC will be announced in due course.

Upon completion of the consolidation exercise and secondary listing, Ezra will retain a majority shareholding in EOC to capitalize on the prospects of the Offshore Support Services business.

emas.com

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Apply Now for the MN 100

The August 2015 edition of Marine News, the leading voice in the North American workboat market, will feature 100 leaders and innovators, including workboat owners and operators,

Alfred Hartmann: New Captain on the Bridge at VDR

Shipping owner Alfred Hartmann is the new President of the Association of German Shipowners (VDR). For the first time a mid-size company owner is at the helm of the VDR,

VT Halter Powers Ahead

If you drive just south of I-10 in Pascagoula, Miss., within 10 minutes you find yourself on the doorstep of VT Halter Marine, arguably one of the more diverse and active shipyards in the U.

Offshore

OSV Technology: Notable Designs & Deliveries

Though the market for Offshore Support Vessels (OSVs) is soft, advances in technology, fit and finish in  the sector is unrivaled in any other maritime niche over the past five years.

Four Petrobras Platforms Halt Output Due to Oil Leak

Four Petrobras oil platforms off the northeast coast of Brazil have halted production after a leak of about 7,000 liters of oil was detected coming from a pipeline linking them,

Gondan Lays Keef for IMR Oceanographic Vessel

Gondan Shipyard has celebrated at its facilities in Figueras the keel laying ceremony of the new Oceanographic Research Vessel for the Institute of Marine Research (IMR) of Bergen, Norway.

Finance

Oil Price Shock Soon to be Positive Overall for Canada

Canada's economy will start to show more positive effects from the drop in oil prices than negatives from the second quarter onwards, Bank of Canada Governor Stephen Poloz said on Friday.

Total Eyes Sale of its Fuel Retailing Business in Turkey

Total aims to exit its fuel distribution business in Turkey and has asked Societe Generale to lead the sale, sources said on Friday, as the French oil producer

MISC Says AET Tankers Unit Not for Sale

MISC Berhad issued a statement today addressing recent market speculation that the company is set to sell its wholly owned petroleum tanker subsidiary AET Tankers.

News

Two Rescued from Sinking Shrimp Boat

Two fishermen were rescued from their sinking shrimp boat by a U.S. Coast Guard aircrew Friday off the coast of Saint Simons Island near Brunswic, Georgia.   Watchstanders

IMO: Making Ferries Safer

The International Maritime Organization (IMO) domestic ferry safety conference in Manila April 24 has adopted guidelines to aid the process of reducing the mounting

Judge Orders Migrant Boat to Remain in Custody

An Italian judge on Friday ordered that the presumed captain of a migrant boat that sank with the loss of more than 700 lives should remain in custody after prosecutors

 
 
Maritime Contracts Maritime Security Offshore Oil Pod Propulsion Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction 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: 0.2612 sec (4 req/sec)