Ezion Ties Up with AML to Secure New Projects in Australia
Singapore-listed offshore services provider Ezion Holdings Limited announced Wednesday that its wholly owned subsidiary, Teras Australia Pty Ltd (Teras), has entered into an agreement to subscribe for 1,704,450 new shares of Aboriginal Maritime Pty Ltd (AML), representing 20 percent of the enlarged share capital of AML, for a total consideration of $233,600 (AUD 250,000).
AML is a 25 percent aboriginal-owned marine services company that provides maritime training and employment to indigenous workers in Australia.
AML will also subscribe for 111,111 new shares of Teras, representing 10 percent of the enlarged share capital of Teras, for a total consideration of $233,600 (AUD 250,000). AML shall have the right to subscribe an additional 138,889 new ordinary shares in the capital of Teras (the Option), representing 10 percent of the enlarged share capital of Teras, at the following consideration:
- Total consideration of $186,900 (AUD 200,000), where the Option is exercised within six (6) months from Aug. 30; or
- Total consideration of the lower of $4.67 million (AUD 5 million) or the fair market value of a (ten) 10 percent interest in Teras as at the date of the exercise of the Option, where the option is exercised after six (6) months before five (5) years from Aug. 30
The considerations for the new shares of both Teras and AML were arrived at on a willing buyer and willing seller basis.
Based on the management accounts of Teras and AML as at June 30, the proportionate unaudited net tangible asset/(net liabilities) are as follows:
- 10 percent Teras' net liabilities : $56,531 (AUD 60,500)
- 20 percent AML's net tangible assets : $65,781 (AUD 70,400)
The Group believes that the tie up with AML will enhance its capability to secure new projects and better support its clients in Australia.
The abovementioned agreement is not expected to have a material impact on the Group’s earnings per share or net tangible assets per share for the financial year ending Dec. 31.
None of the Directors or substantial shareholders of the Company has any interest, directly or indirectly, in the abovementioned transaction, save for their shareholdings in the Company.
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