Alyar Offshore Buys Jasper Cosmopolitan Accommodation Semisub for $75.6M

Jasper Investments Limited inked a memorandum of agreement with Alyar Offshore Pte Ltd. -- a Singapore-incorporated investment company with interests in the Mexican oil and gas industry -- and China's Yiulian Shipyard to sell the Jasper Cosmopolitan accommodation semisub for $75.60 million, the company said in an announcement on the Singapore Exchange Monday.

The transacted price is below an independent valuer's estimate of $160 million submitted to Jasper Oct. 17, with the sale made as it was deemed to be "in the best interests of the Company."

Jasper cited the following factors for its decision which was linked to its contract with the vessel's builder Yulian Shipyard:

  • Jasper Cosmopolitan shall be entitled to keep the retained proceeds from the vessel sale
  • if the vessel sale is not effected by Nov. 4, Jasper would not be to retain any of the sale proceeds as the title of the vessel will be transferred to Yiulian Shipyard

"In light of the above, as well as the lack of alternative timely sale or contract opportunities, and the overall deterioration of the offshore oil and gas exploration and production market as set out ... the Board has determined that the Proposed Disposal is in the best interests of the Company and its shareholders to prevent further losses arising in respect of the Vessel," Jasper said in the press release.

Delivery of the Jasper Cosmopolitan has been scheduled for Nov. 30.

In September, Jasper reported that it has been unable to raise sufficient funds to take delivery of the Jasper Cosmopolitan accommodation semisub from Yiulian Shipyard, and as such a non-payment event has occurred.

As a result, Yiulian Shipyard has exercised its right to seek to sell the Jasper Cosmopolitan vessel. Jasper explained then that it would work with Yiulian Shipyard on the sale process and negotiate a profit share in the interest of enhancing the Jasper Cosmopolitan vessel’s sale price and increase the value to the benefit of the shareholders.


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