Eversendai buys Vahana Offshore for RM235m

KUALA LUMPUR: Eversendai Corp Bhd is acquiring a 100 per cent stake in Vahana Offshore (M) Sdn Bhd and its subsidiaries for RM235 million.

Vahana Offshore is principally involved in the ownership, operations, chartering and management of self-propelled jack-up barges and liftboats.

Jack-up barges and liftboats are used for maintenance, workover, well-service activities, hook-up, commissioning and decommissioning of offshore platforms in the oil and gas industry.

The liftboats can also be used for installation and maintenance in the offshore wind renewable energy sector.

Eversendai said in a statement Vahana Offshore owned two large liftboats, Vahana Aryan and Vahana Arjun, which were equipped with the latest specifications and technology.

Vahana Offshore has secured a longterm time charter contract for the two vessels with Zamil Offshore for use by

Saudi Aramco.

Vahana Arjun is under construction and targeted to be completed by the end of June next year.

Eversendai executive chairman and group managing director Tan Sri A.K. Nathan said the group’s current revenue was cyclical.

The acquisition will enable the group to operate Vahana Aryan and Vahana Arjun, providing additional recurring income.

“After the merger, the Eversendai group will have more opportunities to market its core expertise to players in the energy sector through its involvement in the liftboat business, providing integrated services by combining industry knowledge and sharing technical capabilities to improve the enlarged group’s services.”

Nathan said the combination of a liftboat owner as well as Eversendai’s core business added a dynamic advantage for the enlarged group to meet specific requirements in the oil and gas industry, and offshore wind renewable energy sector.

“Eversendai envisages that projects from the energy sector would be a substantial contributor to the future financial performance and track record of the Eversendai group after the proposed acquisition.”

The acquisition is expected to be completed by the fourth quarter of this year.

Eversendai said the acquisition would be paid via the issuance of 770.49 million new redeemable convertible preference shares (RCPS) in Eversendai at 30.5 sen each.

The RCPS will have a tenure of 10 years with cumulative preferential dividend of three per cent per year, payable only upon Vahana Offshore achieving a consolidated net profit after tax for the relevant financial year.

The RCPS is convertible into Eversendai ordinary shares at a conversion ratio of two RCPS to one ordinary share equivalent to an implied conversion price of 61 sen.

It will not be listed, quoted and traded on Bursa Malaysia or any other stock exchange.

After the merger, the Eversendai group will have more opportunities to market its core expertise to players in the energy sector...

TAN SRI A.K. NATHAN

Eversendai Corp Bhd executive chairman and group managing director