Singapore's Ezra to inject unit into Oslo-listed EOC in $520 mln deal (updated)

Ezra Holdings

10/07/2014 08:51

(Adds details, comments) 
    SINGAPORE, July 10 (Reuters) - Oilfield service firm Ezra 
Holdings Ltd  EZRA.SI  said it is injecting its offshore support 
services division, EMAS Marine, into its associated company, EOC 
Ltd  EOCL.OL , in a stock-and-cash deal worth $520 million. 
    The enlarged EOC Group will seek a secondary listing on the 
Singapore Exchange, targeted for the fourth quarter of 2014, the 
company also said. 
    After the change, EOC Group will be one the largest offshore 
support operators in the Asia-Pacific region by asset value, 
managing an offshore services platform with more than $1 billion 
in assets, Ezra said in a statement. 
    Ezra owns a 46 percent stake in EOC and mainly sources its 
income from subsea services like installing infrastructure on 
the bottom of ocean for offshore oil and gas fields. 
    Lionel Lee, group managing director of Ezra, said the 
injection of offshore support service assets will differentiate 
business lines of each company under the group umbrella and make 
it easier to attract investors. 
    "There will be greater financial transparency for analysts 
and shareholders," Lee said. "Right now a lot of people cannot 
understand the risk we take on the subsea level. They can 
understand our marine business extremely well. They like our 
marine business very well, but not necessarily the subsea 
business." 
    Ezra will transfer all offshore support services assets to 
EOC for $150 million in cash and $370 million in new shares in 
EOC, Ezra said in a statement.  ID:nSNZ8GqVmy  
    Ezra shares have lost more than 13 percent so far this year, 
while Oslo-listed EOC has risen 12 percent. 
    Ezra earlier in the year embarked on a strategic review, and 
said it would consider listing its subsea assets in the United 
States. The strategic review is ongoing, and the U.S. listing 
option is still on the table, Lee said. 
     
    BET ON ACCOMMODATION ASSETS MARKET 
    The consolidation will move the only accommodation and 
construction vessel under EMAS Marine into EOC's fleet of three, 
as Ezra positions itself to tap a growing market for such 
assets, which provide additional lodging for workers on offshore 
oil and gas projects. 
    One of the main reasons for the merger "is obviously to be 
able to get synergy and economies of scale and the operational 
expertise," Lee said. 
    He added that the company is looking at potential new-builds 
for mono-hulled vessels that can accommodate 300 to 500 people 
and are equipped with DP3, the latest version of a dynamic 
positioning system capable of automatically maintaining the 
position and heading of a vessel. 
 
 (Reporting by Rujun Shen and Saeed Azhar; Editing by Matt 
Driskill) 
 ((rujun.shen@thomsonreuters.com)(+65-6403-5666)(Reuters 
Messaging: rujun.shen.thomsonreuters.com@reuters.net)) 
 
Keywords: EZRA HLDGS EOC/