Japan's shipping firm Nippon Yusen Kabushiki Kaisha (NYK) inked an agreement to acquire a 25 percent stake in newly established EMAS Chiyoda Subsea Ltd., currently a 50:50 joint venture company (JVCo) between EMAS AMC Holdings Pte Ltd. and Chiyoda Corp., EMAS AMC's parent company Singapore-based Ezra Holdings Ltd. reported Friday.
EMAS AMC will sell 10 percent stake in EMAS Chiyoda Subsea to NYK for $36 million, an amount which will be provided as a loan to the joint venture for working capital. On its part, Chiyoda will sell 15 percent interest it holds in the subsea firm to NYK and contribute $11.67 million in working capital to the joint venture. New partner NYK will provide $8.33 million in working capital for EMAS Chiyoda Subsea.
EMAS AMC, Chiyoda and NYK will hold 40 percent, 35 percent and 25 percent interests in EMAS Chiyoda Subsea, respectively upon completion of the transactiion.
"Being an international player in the logistics industry, NYK is an experienced partner in managing vessel assets and will be able to bring expertise in vessel operations and asset management to the Subsea Services Business. JVCo is able to leverage on NYK’s long-standing competence in oil and gas shipping and growing experience in several offshore businesses to enhance its capabilities to win, deliver and manage large and complex projects, including large engineering, procurement, construction and installation projects. In view of the foregoing, JVCo will benefit from the broad range of capabilities from the Company, Chiyoda and NYK, and be able to consolidate its global position as a leading subsea services player," Ezra said in the press release.
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