Shareholders of Swissco Holdings Limited, a marine service provider for the offshore oil and gas industry, have approved the acquisition of Scott and English Energy Pte. Ltd. for approximately $230 million (S$285 million).
Scott and English Energy is in the business of owning and leasing mobile offshore drilling units and service rigs to support major oil and gas corporations in their exploration and production activities. The acquisition is considered as a very substantial acquisition under the rules of the SGX Listing Manual.
Commenting on the outcome of the EGM, Alex Yeo, Group Chief Executive Officer of Swissco, said: “The successful outcome of the EGM represents a vote of confidence from shareholders on the direction the Group is taking to expand our business and create value for them. This acquisition combines the expertise, know-how and track record of Swissco, a leading marine service provider, with the sourcing capabilities and industry connections of Scott and English Energy, a fast-growing international rig owner. With the successful completion of this transaction, the business of Scott and English Energy will complement that of the Group and together we can now capture more opportunities in the offshore oil and gas industry across various geographical regions.”
The resolution to approve the Acquisition was passed along with three other resolutions:
– A whitewash resolution approved by way of poll by independent shareholders of Swissco to waive their rights to receive a general offer for all the shares of the Company not already owned by Kim Seng Holdings Pte. Ltd., Double Dragon Energy Holdings Limited and the parties acting in concert with them and parties not independent of them;
– A share consolidation on the basis of every two existing Shares into one consolidated Share;
– The appointment of Chua Wei Teck, Chief Executive Officer of Scott and English Energy, as an Executive Director of Swissco.
Chua Wei Teck said: “The acquisition will achieve operational synergies between Swissco and Scott and English Energy and establish a stable and recurring income stream. At the same time, it could enhance shareholders’ value by diversifying the Group’s earnings base and providing opportunities for growth in other related activities in the offshore marine space.”
“Due to the global demand for energy, oil prices are expected to remain at high levels in the longer term to drive exploration and production activities. Riding on these industry trends, we intend to fuel our growth organically or through joint ventures with reputable companies that share synergies with our existing business.”