Titan Petrochemicals acquires EMS Energy shares to fund shipyard construction

Titan Petrochemicals acquires EMS Energy shares to fund shipyard construction

Hong Kong-listed Titan Petrochemicals Group has announced that it has entered into a memorandum of understanding (MOU) with Singapore’s EMS Energy for a share subscription deal.

Under the MOU, Titan Petrochemicals will subscribe for convertible notes to be issued by EMS Energy for S$10m ($7.16m) to fund the construction of a shipyard in Singapore.

The deal is still subject to a successful completion of an ongoing debt restructuring exercise undertaken by EMS Energy.

EMS commenced the construction of the shipyard in 2014 but has now postponed it due to financial difficulties and the restructuring exercise.

“The board anticipates that should the restructuring under the scheme of arrangement be completed, the company is expected to have discharged all its liabilities to its creditors. Thereafter, the Titan Group, with their financial strength, necessary experience and expertise would be a strong partner for the company to bring the shipyard to operation,” EMS Energy said.

Titan Petrochemicals said the MOU will provide the company and EMS an opportunity to develop a strategic cooperation to synergize their respective resources and expertise to develop the shipyard and ship repairing business.

 

 

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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