Eversendai to acquire Vahana Offshore, units for RM235m
PETALING JAYA: Eversendai Corp Bhd will be acquiring a 100% stake in Vahana Offshore (M) Sdn Bhd and its subsidiaries for RM235 million, which will be fully satisfied via the issuance of 770.5 million new redeemable convertible preference shares at an issue price of 30.5 sen, after a conditional share sale agreement was entered into on June 30.
Vahana and its subsidiaries are principally involved in ownership, operations, chartering and management of self-propelled jack-up barges/liftboats, and is the first Malaysian company to own and operate a selfpropelled jack-up barge, otherwise known as a liftboat.
The RCPS will have a tenure of 10 years with cumulative preferential dividend of 3% per annum, payable only upon Vahana 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 2 RCPS to 1 ordinary share equivalent to an implied conversion price of 61 sen.
Eversendai executive chairman and group managing director Tan Sri AK Nathan is of the view that current revenue of Eversendai is cyclical and the proposed acquisition will provide the group with the opportunity to own and operate Vahana Aryan and Vahana Arjun providing the enlarged group with an additional source of consistent recurring income to enhance its revenue and profits.
“The proposed acquisition will also resolve the existing cross borrowings and related party transactions involving Vahana and Eversendai. Once merged, it also could booster minority shareholders confidence going forward,” he said.
Currently, Vahana owns two liftboats, namely Vahana Aryan and Vahana Arjun and both are large liftboats equipped with the latest specifications and technology.
Vahana has secured a long-term time charter contract for Vahana Aryan with Zamil Offshore for Saudi Aramco and has also secured a similar contract with Zamil Offshore for Vahana Arjun. Vahana Arjun is currently under construction and is targeted to be completed by end June 2021.
The proposed acquisition is expected to be completed by the fourth quarter.