Singapore-listed Swissco Holdings Limited (Swissco or the Company, together with its subsidiaries, the Group), a marine service provider for the offshore oil and gas industry, announced Monday that it has entered into a definitive Sale and Purchase Agreement (SPA) in relation to a proposed $225 million (SGD 285.0 million) acquisition of Scott and English Energy Pte. Ltd. (Scott and English). The SPA was signed with Double Dragon Energy Holdings Limited (Double Dragon) for the acquisition of the entire issued and paid-up share capital in Scott and English (Acquisition).
Commenting on the transaction, Alex Yeo, CEO of Swissco, said: “The SPA will bring Swissco another step closer to our goal of expanding upstream into the offshore rig chartering business. Swissco's acquisition of a fast-growing international rig owner will help diversify its earnings base and provide us with a stable, recurring income. In addition, the Acquisition will lead to cost synergies and enhance our operational offering.”
Scott and English 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. It is helmed by industry veterans with many years of experience in the oil & gas industry, including Tan Fuh Gih and Tan Kim Seng. Scott and English is a wholly-owned subsidiary of Double Dragon, which is majority-held by Kim Seng Holdings Pte. Ltd.
Commenting on the transaction, Chua Wei Teck, CEO of Scott and English, said: “By adding our drilling units and service rigs to Swissco’s fleet of vessels, we will be able to offer current and potential oil and gas customers a comprehensive range of services. With an integrated base of operations, we can continue our expansion into key markets and build our portfolio of quality assets to ride on the positive momentum of the offshore oil and gas industry.”
In respect of the Acquisition, UOB Kay Hian Private Limited has been appointed as the sole financial adviser, and Provenance Capital Pte Ltd has been appointed as the independent financial adviser to advise on the transaction.
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