Ezra to sell half of subsea arm to Japan's Chiyoda
Company hopes deal will catapult the business to a bigger stage
Singapore
OFFSHORE services firm Ezra Holdings agreed on Thursday to sell off half of its substantial subsea business to Japanese oil and gas giant Chiyoda in a deal that it hopes will catapult it onto a bigger stage and more than make up for a short-term hit to earnings per share (EPS).
Chiyoda will pay US$180 million in cash for a 50 per cent stake in Ezra's subsea services arm, EMAS AMC, which values the unit at US$360 million, Ezra noted in a Singapore Exchange filing. The implied aggregate transaction value is about US$1.25 billion, said Ezra. The total deal value includes US$530 million of third-party net debt that EMAS AMC holds and another US$360 million in long-term funding from Ezra.
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