Swissco spending S$285m to enter rig business

Singapore: OSV operator Swissco Holdings is to pay S$285m to take over Scott and English Energy, paving the way for Swissco to enter the offshore rig chartering business.
Scott and English owns and leases mobile offshore drilling units and service rigs.
Scott and English is a subsidiary of Double Dragon Energy Holdings, which is majority-held by Kim Seng Holdings.
Helping fund the acquisition, Swissco intends to undertake a share consolidation of two shares into one new share. An extraordinary general meeting will be convened at a later date to seek the approval of Swissco shareholders for the acquisition.
Diversification was cited by Swissco as the rationale for the purchase.
“This move upstream by the group in the offshore oil and gas E&P sector is a step forward from the primarily OSV-focused business,” Swissco said in a release to the Singapore Exchange.
Alex Yeo, ceo of Swissco, said: “The acquisition will combine the expertise, know-how and track record of a leading marine service provider with the sourcing capabilities and industry connections of a fast-growing international rig owner in the offshore oil and gas industry. Riding on the robust momentum in the offshore oil and gas sector, the synergies between the two businesses will diversify the earnings base for the company while providing it with stable, recurring income.”  [03/03/14]

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