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EMS Energy to sell stake in OSSG for S$2.8m
OFFSHORE marine services firm EMS Energy is planning to sell its stake in oil and gas exploration equipment company Oilfield Services & Supplies Group (OSSG) Pte Ltd to ease working capital needs.
In an announcement late on Thursday night, the group said that its subsidiary EMS Offshore had on Nov 3 entered into a deed of sale and purchase with Victor Oilfield Services Pte Ltd and Ong See Beng to sell the 20 per cent stake in OSSG for S$2.8 million.
The purchasing parties are current shareholders of OSSG.
EMS Energy is currently facing cashflow difficulties and is proposing to restructure several debt obligations.
"The board of directors believes that the net proceeds will be able to ease the working capital needs of the group during this difficult time," said the firm.
The firm will earn net proceeds of about S$2.66 million, representing a deficit of about S$3.2 million over the S$5.87 million book value of the sale shares as at June 30.