Vallianz Acquires Offshore Manpower Services Firm OER for $27.7M
Vallianz Holdings Limited (Vallianz, and together with its subsidiaries, the Group), a fast growing provider of offshore support vessels and integrated marine solutions to the oil and gas industry, reported Wednesday that it is acquiring OER Holdings Pte. Ltd. (OER) (the Acquisition) for $27.7 million.
Headquartered in Singapore, OER is a provider of manpower services to the offshore industry and has been supplying professional crew with proven experience in offshore work and related hospitality services to clients worldwide including Brunei, Indonesia, Malaysia, Vietnam, Thailand, India and Mexico.
OER was founded by Sugianto Tandio, a respected business entrepreneur who has gained recognition for his achievements through several awards, notably the World Economic Forum's 2013 "Schwab Foundation Social Entrepreneur of the Year Award" and the "Ernst and Young 2013 Entrepreneur of the Year Innovation Award". Tandio is Indonesian and a Master of Science graduate from the Process Automation Engineer program at the University of North Dakota, USA.
The Acquisition will enable the Group to attain greater efficiency in the management of crew personnel and raise the value of its services to customers. At the same time, it will also expand the Group’s customer base and geographical footprint.
The purchase consideration will be satisfied by the issue of 250 million ordinary shares in the capital of Vallianz at a price of $0.112 (SGD 0.14) per share. This represents a substantial premium of 27 percent to Vallianz’s volume-weighted average price of $0.0881 (SGD 0.1101) per share Sept. 30.
The Acquisition follows on the heels of Vallianz’s recent purchase of a marine base in Batam, Indonesia. These initiatives are complementary to the Group’s vessel chartering and third-party vessel management businesses and will lead to further integration within the organization.
Darren Yeo, CEO of Vallianz, said, “The Group provides crew personnel as part of our services for our vessels under charters, as well as for third-party vessels. By acquiring OER, we will be able to consolidate the management of crew resources under one roof, and benefit from improved operational efficiency and economies of scale. We can also enhance the value of our services to customers by providing a complete solution to address their manpower requirements.
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Vallianz Updates on Swiber's Request for Payment of $63.5M in Arrears (Sep 01)
- Singapore's Troubled Swiber Holdings Opts for Judicial Management (Aug 01)
- Vallianz Secures $210M Contracts to Supply 13 OSVs to ME NOC (May 16)