Philippine corporation Udenna has broken off negotiations over a potential investment of $73 million in struggling Singapore-based offshore vessel company Emas Offshore.
Emas Offshore said on Wednesday that Udenna would no longer be proceeding with the proposed investment.
Back in October 2018, the two companies signed a non-binding term sheet over a potential investment in Emas, which has been struggling with debt restructuring attempts.
Under the term-sheet, Udenna had an exclusivity term of five weeks from October 29, 2018, to conclude satisfactory due diligence, propose, and conclude mutually acceptable terms and conditions that would be subject of a formal binding agreement in respect of the proposed transaction.
The non-binding term sheet was supposed to entail an aggregate investment amount of $73.29 million for the acquisition of certain vessels owned by Emas Offshore that are currently secured to various bank lenders of the group and for the vessels to be owned by the group “without any encumbrance, mortgage or security interest at the close of the proposed transaction.”
Udenna, based in The Philippines, has businesses across distribution and retailing of refined petroleum products, shipping & logistics, property development, infrastructure development, hospitality, and educational institutions.