Singapore’s Ezra Holdings has announced the completion of the deal for Japanese shipping line Nippon Yusen Kabushiki Kaisha (NYK) to take a 25% stake in Emas Chiyoda Subsea, joining Ezra and Japan’s Chiyoda Corporation.
Tadaaki Naito, president, president corporate officer of NYK, commented: “This partnership signifies an important new phase of our business as NYK expands into the offshore oil and gas exploration and development. We are confident that the company’s long-standing competence in oil and gas shipping will make a positive contribution to this partnership.”
Ezra Holdings receives $36m from NYK for a 10% stake, while Chiyoda sold a 15% stake. Ezra has committed the $36m in proceeds back to the jv in the form of a shareholder loan for working capital, while Chiyoda is injecting $11.67m and NYK a further $8.33m via shareholder’s loans.
“We are delighted to announce the addition of such a dominant force in the shipping industry. NYK’s participation in this JV will enable us to tap into the Japanese market and NYK’s wealth of experience in vessel operations around the world. NYK’s investment is a strong testament to the core fundamentals and long-term prospects of our subsea business,” commented Lionel Lee, Group CEO and managing director of Ezra.