Wanax Invests in PSV Market
Wanax AS, a wholly owned subsidiary of S.D Standard Drilling Plc, will invest USD 5.215mln in platform supply vessels (PSV) Opportunity III DIS.
The investment will be done through subscription of ownership interests in PSV Opportunity III and gives Wanax AS a 35% ownership stake in PSV Opportunity III.
PSV Opportunity III will take delivery of two mid-size PSV of the UT 755 LN design. The vessels were built in Norway in 2007 and 2008.
The total purchase price for the two vessels is USD 11.7 million, financed solely through equity.
Fletcher Shipping will act as Technical and Commercial Manager for PSV Opportunity III, while Clarksons Platou Project Finance AS will act as a Corporate Manager.
PSV Opportunity III is a newly established entity with no historical financial information as of now. PSV Opportunity III AS, as general manager in PSV Opportunity III DIS, has signed a memorandum of agreement with the seller of the vessels.
The transaction of PSV Opportunity III purchasing the two vessels will be completed on or about 19 of January 2017.
This transaction implies a further strengthening of the Company's investment in the PSV market and is in line with the Company's current investment strategy to invest in the oil services industry, directly or indirectly into companies, securities and/ or assets, purchasing assets at low values.
The Company believes that the investment in PSV Opportunity III is an attractive investment opportunity due to the favorable purchase price for the two vessels to be owned by PSV Opportunity III.
