Siem, Daya work out new terms for OSCVs sale. One vessel cancelled

Norway’s Siem Offshore (SIOFF) and Malaysia’s Daya Materials Berhad have negotiated their terms for the sale of two DP2 Offshore Subsea Construction Vessels (OSCVs) Siem Daya 1 and Siem Daya 2 whereby the sale of the second vessel has now been cancelled. 

According to the previous agreement, the two vessels were to be sold for $140 million each.

According to the new agreement, SIOFF has agreed to sell Siem Daya 1 to Daya for $120 million. In addition, SIOFF is entitled to a 60/40 profit share in SIOFF’s favour based on the profit Daya makes on the vessel limited to an additional $10 million.

A deposit of $10 million is to be paid within June 30, 2015. Cancelling date is August 31, 2015. SIOFF says that $30 million of the purchase price for the vessel will be financed by a sellers credit from Siem Offshore in the form of a convertible bond to Daya Materials Berhad with 4 years duration and a coupon of 5%, and a conversion price of 15 Malaysian sen per share.

Both vessels are on long-term charters to Daya.

Siem Daya 2

The companies have also agreed to reduce the charter rate for Siem Daya 2 to $55,000 per day with a day rate of $45,000 being applicable in the event the vessel is in lay-up and a catch up rate which would secure a day rate of up to $60,000 per day provided the vessel operates profitably for Daya. The charter party for Siem Daya 2 has further been extended with one year.

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