Singapore's Ezra Holdings allows Emas Offshore to defer payment for assets

Ezra Holdings

24/09/2014 11:18

SINGAPORE, Sept 24 (Reuters) - Singapore offshore oilfield 
services company Ezra Holdings Ltd  EZRA.SI  has agreed to defer 
for up to three years the majority of cash owed for assets 
bought by affiliate Emas Offshore Ltd  EMASL.OL . 
    Ezra in July said it planned to sell its offshore support 
services division to Emas Offshore for $520 million, made up of 
$370 million worth of Emas Offshore shares and $150 million in 
cash.  ID:nL4N0PL25J  
    The asset shuffle comes as major oil companies tighten 
spending on exploration and production, bringing a period of 
depressed revenue in the offshore oilfield service industry that 
executives say could extend into next year.  ID:nL5N0RB233  
    On Wednesday, Ezra in a statement said up to $125 million of 
the cash portion of the asset sale may be paid over three years 
with interest payable at 3.5 percent per annum.  ID:nSNZbqLzs8  
    Shares of Ezra closed down 2.5 percent after the statement, 
bringing the year-to-date decline to 29 percent. 
    Emas Offshore's Oslo-listed shares last traded at 5.7 NOK 
($0.898 US dollar). They have fallen 1.6 percent so far this 
year after nearly doubling last year. 
    Emas Offshore, formerly known as EOC Ltd, plans to sell up 
to 210 million shares in Singapore at an indicative range of 
S$1.02 to S$1.21 each. Ezra would emerge from the sale as the 
controlling shareholder of Emas Offshore.  ID:nL3N0R41GQ  
    Thomson Reuters publication IFR on Wednesday reported Emas 
Offshore had reduced the sale to 57.6 million shares at S$1.21 
each. The company did not give a reason for the change, IFR 
said. 
    (1 US dollar = 6.3485 Norwegian krone) 
 
 (Reporting by Rujun Shen; Editing by Christopher Cushing) 
 ((rujun.shen@thomsonreuters.com; +65-6403-5666; Reuters 
Messaging: rujun.shen.thomsonreuters.com@reuters.net)) 
 
Keywords: EZRA HLDGS EMAS OFFSHORE/