News

SWISSCO ENTERS OFFSHORE RIG CHARTERING BUSINESS THROUGH S$285.0 MILLION ACQUISITION OF SCOTT AND ENGLISH ENERGY

March,3rd 2014

Swissco Group expanding upstream into the offshore rig chartering business with the

acquisition of Scott and English Energy.

 

Scott and English Energy is in the business of owning and leasing mobile offshore drilling

units and service rigs to support major oil and gas corporations in their exploration and

production (“E&P”) activities.

 

Operational synergies expected with the acquisition, providing Swissco Group with a

diversified earnings base with stable, recurring income.

Singapore, 28 February 2014

 

SGX Mainboard-listed Swissco Holdings Limited (“Swissco” or the “Company,” together with its subsidiaries, the “Group”), a leading marine service provider for the offshore oil and gas industry, announced the proposed acquisition of Scott and English Energy Pte. Ltd. (“Scott and English”) for approximately S$285.0 million today.

 

The Company has entered into a legally binding heads of agreement (“HOA”) with

Double Dragon Energy Holdings Limited (“Double Dragon”), which will form the broad basis

of the definitive sale and purchase agreement to be entered into for the proposed acquisition

of the entire issued and paid-up share capital in Scott and English (“Acquisition”).

Scott and English is in the business of owning and leasing mobile offshore drilling units and

service rigs to support major oil and gas corporations in their exploration and production

(“E&P”) activities. It is helmed by industry veterans with many years of experience in the oil &

gas industry, including Mr. Tan Fuh Gih and Mr. Tan Kim Seng. Scott and English is a whollyowned subsidiary of Double Dragon, which is majority-held by Kim Seng Holdings Pte. Ltd. (“KSH”).

 

In connection with the Acquisition, the Company proposes to undertake a share consolidation

(“Share Consolidation”) of two Shares into one new Share (“Consolidated Share”).

 

The consideration of S$285.0 million is to be satisfied by the allotment and issuance of

452,380,952 Consolidated Shares in the capital of Swissco (“Consideration Shares”) at an

issue price of S$0.630 per Consideration Share. Scott and English is valued at approximately

S$289 million according to a valuation report dated 27 February 2014 issued by Jones Lang

LaSalle Corporate Appraisal and Advisory Limited commissioned by the Company.

 

An extraordinary general meeting will be convened at a later date to seek the approval of

Swissco shareholders for the Acquisition. The Acquisition is also subject to the approval of

SGX, as it is regarded as a very substantial acquisition under the rules of the SGX Listing

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