Ezra shares up 4.31% on news of joint venture with Japan's Chiyoda

Singapore

SHARES in Ezra Holdings closed up 4.31 per cent at S$0.121 on Tuesday on news of a joint-venture agreement with Japanese engineering giant Chiyoda.

Ezra's share price has been trending down over the past 12 months, hitting a low of S$0.10 before the rebound following the announcement of the proposed joint venture relating to Ezra's subsea services business under its subsidiary Emas AMC.

Under the share sale and subscription agreement involving the joint venture, Chiyoda is effectively offering US$180 million in cash for a 50 per cent stake in the subsea services business. This will be by way of a restructuring to put the business under a joint-venture company. Chiyoda will buy shares in the joint-venture company from Emas AMC and subscribe for new shares for the half stake. An RHB Research report said the Chiyoda offer, which is equivalent to 78 per cent of Ezra group's market capitalisation, reflected the market under-valuing the counter on the Singapore bourse. RHB also highlighted upside from a spli…