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Mermaid Maritime increases stake in Subtech Saudi Arabia to 95%
MAINBOARD-LISTED Mermaid Maritime Public Company Ltd has increased its stake in Subtech Saudi Arabia Ltd to 95 per cent from 70 per cent.
The group achieved this through its wholly owned subsidiary, Mermaid Subsea Services (International) Ltd, by acquiring previous co-shareholder General Technology & Systems Co Ltd.
The remaining 5 per cent in Subtech Saudi Arabia belongs to local interests represented by Integrated Trading Services Establishment.
The aggregate value of the consideration for the 25 per cent shares was US$250,000.
The new shareholding structure of Subtech Saudi Arabia is currently in the registration process and is expected to be completed by the end of October 2014.
Subtech Saudi Arabia will also be renamed as Mermaid Subsea Services (Saudi Arabia) Ltd.
The move is part of the subsea and drilling services provider's efforts to increase its business presence in Saudi Arabia.
This comes after the world's biggest oil producer, Saudi Aramco, unveiled plans to increase investment over the next decade to keep oil production steady and double gas output.
The planned increase in investment is likely to fuel greater spending within Saudi Arabian offshore facilities and associated projects where Mermaid has a presence.
Chalermchai Mahagitsiri, chief executive officer of Mermaid Maritime, said the group has already established operations in Saudi Arabia and is the key subsea service provider to Saudi Aramco. "We will continue optimising our commercial efforts and operations to ensure that we are able to capitalise on this planned upcoming increase in offshore spending."
Mermaid Subsea Services operates in Thailand, Indonesia, Singapore, Qatar, the United Arab Emirates and Saudi Arabia.