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JAPANESE shipping giant Nippon Yusen Kabushiki Kaisha (NYK) is acquiring a stake in the subsea joint venture (JV) between Singapore-listed company Ezra Holdings and Japanese contracting group Chiyoda.
NYK will pick up 25 per cent in the JV, Emas Chiyoda Subsea (ECS), with Ezra and Chiyoda retaining 40 per cent and 30 per cent shareholding, respectively, Ezra said on Monday.
The Singapore-listed company did not disclose the expected transaction value for the transfer of interest in the JV to NYK.
"NYK's participation is expected to augment the collective know-how and expertise in global expansion strategies, harnessed through its 130-year experience in ship management and operation," Ezra added.
The closing of the JV transaction is subject to among others, the approval of Ezra's shareholders and the satisfaction of other customary closing conditions. Assuming these conditions are met, the transaction is expected to close by the third quarter of the calendar year 2016.
Prior to NYK's announced acquisition, ECS is a 50:50 UK-registered JV between Ezra and Chiyoda.
Chiyoda forked out US$150 million in cash to Ezra and injected US$30 million into ECS in late March, under a deal which values the joint venture at US$360 million.
Correction: Chiyoda is buying a 50 per cent stake in Emas Chiyoda Subsea at US$180 million, which values the joint venture at US$360 million, not US$180 million as previously stated. We apologise for the error.