Singapore's NauticAWT Ltd., a subsurface, subsea and surface facilities engineering services and contracting solutions provider to the oil and gas industry, reported Friday that it had reached an agreement with IMC Offshore Engineering Ltd. to acquire locally based Marine Engineering Services Pte. Ltd. (MESPL) -- a provider of facilities and project engineering services for the marine and offshore oil and gas industries.
The acquisition will cost NauticAWT, which had collaborated with MESPL in providing topside and engineering services on a jacket requalification project in the Khafji Operations area of Saudi Arabia and Kuwait, approximately $593,215 (SGD 850,000). The amount comprises $34,895 (SGD 50,000) in cash payment on completion date, $314,055 (SGD 450,000) in cash payment on Dec. 1 and the issuance and allotment of such number of new shares in the capital of NauticAWT having an aggregate value of around $244,440 (SGD 350,000) no later than Dec. 3.
NauticAWT's Board commented that the proposed acquisition will allow it to expand its core business within the subsea and surface facilities business segment as "MESPL's business is synergistic and complementary to the existing service offerings of the Group," potentially improving its future financial performance and providing costs synergy in these areas.
The company also hopes "to leverage on MESPL's 17 year track record, expertise and experience of project work to purse growth opportunities in new and existing markets," NauticAWT said in the press release.
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