NYK eyes exit from Emas Chiyoda Subsea

Market rumours are flying in Singapore around the embattled subsea venture Emas Chiyoda Subsea with talk of Kristian Siem and Subsea 7 looking to buy Nippon Yusen Kaisha’s (NYK) 25% stake in the company.

A spokesperson from NYK denied that a deal was done however, telling Splash that the company is still in talks as to how to proceed with the JV, and the Japanese shipping major has yet to reach a conclusion.

NYK has had enough of the bad press surrounding the venture which has seen charters broken and a series of legal action being taken against the business for non-payment.

Last month, NYK reassessed the future recoverable value of its stock holdings and loans to Emas Chiyoda Subsea and subsequently recorded an extraordinary loss of JPY13bn ($114.1m) in its third quarter results.

Chiyoda Corporation followed suit, and anticipates risks of up to JPY 38 bn ($333.6m) stemming from the subsea jv.

Singapore’s Ezra Holdings, which owns a 40% stake in the business, recently admitted it might have to write off $170m from its investments in the joint venture and a failure to restructure its finances could see it make a shocking exit from the subsea entity altogether.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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