Ezion secures strategic investment from Temasek-linked Pavilion Capital

Deal could raise up to S$50m of gross proceeds, but group still needs to deliver the required cash flows to pare debts, says analyst

Published Fri, Apr 6, 2018 · 09:50 PM

Temasek

Singapore

OFFSHORE and marine (O&M) group Ezion Holdings could raise up to S$50 million through a placement of shares and options to its first strategic investor in this prolonged industry downturn.

On Wednesday, Temasek-linked Pavilion Capital Fund Holdings (Pavilion) agreed to take a 4.43 per cent stake in Ezion by buying 96.2 million shares at 20.8 Singapore cents apiece, or S$20 million in total. Net proceeds from the share placement will be about S$19.6 million.

Pavilion will also receive, for a nominal sum of one dollar, 137.6 million options that may be converted into Ezion shares at 21.8 Singapore cents per Ezion share. If the options are fully exercised, Ezion will receive an additional S$30 million of gross proceeds, and Pavilion will hold a 10.13 per cent stake of Ezion's enlarged share capital. Net proceeds from the options, if fully exercised…

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