Thailand-based Mermaid Maritime Public Company Limited (Mermaid) announced Thursday that its subsidiary, MTR-3 (Singapore) Pte. Ltd., its newly incorporated subsidiary, MTR-4 (Singapore) Pte. Ltd., and an existing subsidiary company, Mermaid Offshore Services Pte. Ltd., have on this Thursday, Jan. 9 entered into the following agreements with China Merchants Industry Holdings Co., Ltd. for an aggregate sum of $436 million. Such transaction hereinafter referred to as the “Transaction”.
(a) Agreement for the Design, Construction and Completion of a Self-Erected Drilling Tender (Hull No. CMHI (JS)-151-1 and Equipment Set between MTR-3 (Singapore) Pte. Ltd. and China Merchants Industry Holdings Co., Ltd. (Newbuild Tender Rig-1)
(b) Agreement for the Design, Construction and Completion of a Self-Erected Drilling Tender (Hull No. CMHI (JS)-151-2 and Equipment Set between MTR-4 (Singapore) Pte. Ltd. and China Merchants Industry Holdings Co., Ltd. (Newbuild Tender Rig-2) hereinafter collectively referred to as “New Build Tender Rigs”; and
(c) Agreement for the Design, Construction and Completion of a Multi-Purpose Subsea Dive Support & Construction Vessel (Hull No. CMHI (JS)-152-1) and Equipment Set between Mermaid Offshore Services Pte. Ltd. and China Merchants Industry Holdings Co., Ltd. (Newbuild DSV)
There are no material conditions attaching to the Transaction.
Information and Rationale for the Newbuild Tender Rigs and Newbuild DSV and Benefits Expected
The expected date of delivery of the Newbuild Tender Rig-1 and Newbuild Tender Rig-2 and the equipment set shall be in the first and second quarter of 2016 respectively while the delivery of Newbuild DSV shall be in the third quarter of 2016.
The purchase is undertaken as part of Mermaid’s commitment to expand the size of the rigs and vessels in order to enhance its offshore oil and gas support services in the ordinary course of business and capabilities as well as to achieve greater economies of scale. The Newbuild Tender Rigs and Newbuild DSV will also enhance Mermaid’s market position in terms of the modernization of its fleet. Mermaid currently owns two tender rigs and seven owned and two chartered sub-sea support vessels.
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