S.D. Standard Drilling has increased its stake in a company which owns six platform suppliers previously owned by World Wide Supply, a financially distressed offshore vessel owner.
S.D. Standard Drilling informed on Wednesday it has entered into an agreement with Royal London Asset Management (RLAM) to acquire 2,500,000 shares in New World Supply (NWS), corresponding to approximately 7.7% of the total outstanding shares in NWS.
NWS is a Cayman Island exempted company that, 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 already owns 100% of three large-size PSVs and has invested in additional 13 mid-size PSVs, bringing the total fleet of partly and/or fully owned vessels up to 16 PSVs – all purchased at low values.
Earlier this year, the company acquired a 15.6% ownership stake in NWS. Following the transaction announced on Wednesday, the company will hold approximately 23.3% of the total outstanding shares in NWS.
As a consideration for the 2,500,000 shares in NSW, Standard Drilling will issue 35,000,000 new shares to Royal London Asset Management, each to a subscription price of NOK 0.75 per new share, corresponding to NOK 26,250,000.
Offshore Energy Today Staff