Singapore’s Ezra Holdings has received approval from shareholders for its proposed 50:50 subsea joint venture with Chiyoda.
The proposed deal was announced in August this year. The new company, Emas Chiyoda Subsea will be jointly (50:50) controlled by the two partners. The transaction implies an aggregate deal value for Emas Chiyoda Subsea of approximately $1.25 billion.
At the company’s Extraordinary General Meeting held today, 99.97% of shareholders voted in support of Chiyoda’s investment in Ezra’s subsea services business, to form Emas Chiyoda Subsea (“ECS”).
“We are delighted by the show of support from shareholders for this partnership with Chiyoda. Our shareholders’ confidence in our partner and EMAS CHIYODA Subsea stands as a testament to the ongoing strategy to accelerate the growth of our subsea services business. With the benefit of an expanded expertise in EPCI projects, we look forward to greater opportunities and conquering new challenges,” said Lionel Lee, Group CEO and Managing Director of Ezra.
The proposed subsea joint venture with Chiyoda is expected to complete in the first half of the financial year 2016. Providing rationale for the transaction, the companies said that the new firm Emas Chiyoda Subsea, will be able to carry out larger and more complex offshore EPCI projects through a combination of capabilities and resources.
Offshore Energy Today Staff