Baker Tech cancels US$50m rescue deal for EOL

Singapore

OILFIELD services provider Baker Technology has called off a plan that aimed to raise US$50 million of rescue financing for offshore support vessel (OSV)-focused Emas Offshore Limited (EOL). On Monday, Baker Tech said its subsidiary, BT Investment (BTI), has terminated a binding term sheet with EOL.

The term sheet signed in December 2017 called for BTI and its co-investors to inject US$50 million of new equity into EOL. BTI will no longer be proceeding with the investment, Baker Tech said without elaborating further.

Baker Tech also did not respond to a request for comments. But The Business Times understands that the oilfield services provider may have decided to pursue organic growth instead of acquiring an existing OSV business. This spells a setback to EOL's months-long bid to restructure its group of companies.

EOL maintained in a separate disclosure before Monday's trading close, however, that other potential investors have expressed interest in its business operations and platform, as well as vessels managed and owned by its subsidiaries. EOL added that it will provide updates once any definitive agreements are signed with these potential investors.

Baker Tech closed at 51 Singapore cents, up 0.5 cent on Monday. EOL has been on trading suspension since March 2017.