Perisai disputes Emas' claim to cancel US$43m share sale deal

A MALAYSIAN associate of offshore contractor Emas Offshore is disputing the latter's claim to shake off a US$43 million repayment obligation from a deal made years ago, setting the stage for a potential legal battle.

Singapore-listed Emas said in a filing to the Singapore Exchange on Tuesday night that the collapsed Perisai Petroleum Teknologi is contesting claims made by it.

Emas had said last Thursday that it wants to terminate the share sale agreement and a separate shareholders' agreement between the two parties due to "certain breaches" by Perisai.

The said agreement would have allowed Perisai to dispose of its stake in subsidiary SJR Marine to Emas for US$43.03 million.

Emas, a unit of mainboard-listed Ezra Holdings, did not elaborate on what the breaches were in its Tuesday filing.

Emas and Perisai had entered into the share sale agreement in 2012. It gave Perisai the right to exercise a put option to sell its 51 per cent stake in SJR Marine and a mobile offshore production unit to Emas for US$43 million. Should the share sale agreement be terminated, the put option will be extinguished.

Said Emas on Tuesday: "The company is disputing Perisai's claims under the Dispute Notifications and its purported exercise of the put option rights."