S.D. Standard Drilling has further increased its ownership in a company which holds six platform supply vessels previously owned by the financially distressed vessel owner, World Wide Supply.
S.D. Standard Drilling said on Saturday it has entered into agreements with Hof-Hoorneman Bankiers NV and Ulf Johan Rieber to acquire a total of 933,143 shares in New World Supply (NWS), corresponding to approximately 2.9% of the total outstanding shares in NWS.
NWS is a Cayman Island exempted company which, through its wholly owned subsidiaries, owns six 2013-built 3300 CD platform supply vessels (PSVs); World Diamond, World Peridot, World Pearl, World Emerald, World Opal and World Sapphire. The vessels were originally acquired en-bloc by NWS from World Wide Supply, which had them all in layup, for a total consideration of $27.5 million.
Standard Drilling in January bought a 15.6% ownership stake in NWS and an additional 7.7% in mid-March bringing its total ownership to 23.3%. Subsequent to the transaction announced on Saturday, the company will hold approximately 26.2% of the total outstanding shares in NWS.
As a consideration for the 933,143 shares in NSW, Standard Drilling will issue 3,964,002 and 9,100,000 new shares to Hof-Hoorneman and Rieber respectively, each to a subscription price of NOK 0.75 per new share, corresponding to NOK 9,798,001.50 (approximately $1.14 million using a USD/NOK exchange rate of 8.58).
The company’s board of directors has resolved to issue the consideration shares pursuant to an authorization granted by the company’s EGM held on February 23, 2017. The consideration shares will be delivered to Hof-Hoorneman and Rieber as soon as practically possible, the company said.