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Triyards acquires two facilities in Singapore and Vietnam for A$23.3m
TRIYARDS Holdings has inked agreements to acquire Strategic Marine (S) in Singapore and Strategic Marine (V) in Vietnam for A$23.3 million (S$26 million), it said on Tuesday evening.
The vendor, Henderson Marine Base, is an Australia-incorporated shipbuilder and fabricator with facilities in Australia, Singapore and Vietnam.
Strategic Marine (S) holds a shipbuilding and fabrication facility located in Pioneer while Strategic Marine (V) has another facility at the Dong Xuyen Industry Park in Vietnam.
The purchase price took into account the net asset value of the target companies at A$19.7 million based on the unaudited proforma consolidated financial statements for the fiscal years ended December 2013.
The consideration will be paid entirely by cash, funded by the proceeds from Triyards' issuance of 29.5 million new shares at S$0.70 a piece in September as well as its internal cash resources.
Triyards said that besides organic expansion, its growth strategy also involves acquisitions of quality assets in strategic regions to develop its core business.
"The proposed acquisition is expected to provide the group with increased fabrication capacities that will enable the group to tap on increased resources to achieve economies of scale and scope," it added. It will also give the group access to the target companies' clientele base, which it can use to boost its market reach for its product and service offerings.
Triyards provides engineering, fabrication and ship-construction solutions for offshore and marine industries.