Singapore: Offshore operator Ezion Holdings has agreed with AusGroup to sell subsidiaries Ezion Offshore Logistics Hub and its 90% stake in Teras Australia for S$55m.
Ezion Offshore Logistics Hub operates a port and a marine supply base while Teras provides ship chartering services and maritime training to indigenous workers in Australia.
Payment will be made to Ezion via S$14m in cash and the remainder in AusGroup shares, giving Ezion a 17.83% stake of the enlarged AusGroup, which is also listed on the Singapore Exchange. In April the two companies said they intended to explore and pursue opportunities for collaboration, which included AusGroup appointing two directors nominated by Ezion to its board of directors and an option agreement with Ezion agreeing to take 110m share options in AusGroup.
Ezion says the sale will allow the company to continue its focus on investments in service rigs to meet strong demand. [23/07/14]