EMS Energy, HK's Titan sign MOU on S$10m convertible notes issue

MARINE and offshore services provider EMS Energy on Wednesday said it has entered into a non-binding memorandum of understanding with Hong Kong-listed Titan Petrochemicals Group to raise up to S$10 million through convertible notes.

The funding is meant for EMS to complete the construction of its shipyard in Tuas, Singapore. The proposed investment is subject to the restructuring exercise based on a scheme of arrangements announced in February.

Titan Group runs one of the largest yards in Asia for ship repair, offshore engineering and ship building. The company is an unrelated third party.

Under the agreement, the Titan Group's option to convert the debt into equity shall commence 24 months after the first disbursement of S$10 million. The conversion price shall be negotiated and agreed between the company and the Titan Group in the definitive agreement.