Eversendai to pay RM235m for founder AK Nathan’s liftboat firm

TheEdge Tue, Jun 30, 2020 10:08pm - 3 years View Original


KUALA LUMPUR (June 30): Eversendai Corporation Bhd is to pay RM235 million to acquire liftboat firm Vahana Offshore (M) Sdn Bhd via the issuance of new redeemable convertible preference shares (RCPS).

Vahana is the privately-owned firm of Eversendai founder Tan Sri AK Nathan, who had announced in February of his intention to inject the firm into Eversendai to improve the oil & gas and construction group’s bottom line.

In a filing with Bursa Malaysia today, Eversendai said it has signed an agreement with Vahana Holdings Sdn Bhd to acquire its 100% equity interest in Vahana Offshore. This will involve the issuance of 770.49 million RCPS in Eversendai at 30.5 sen each.

“The RCPS shall have a tenure of 10 years with cumulative preferential dividend of 3% per annum and is convertible into ordinary shares in Eversendai at a conversion ratio of two RCPS to one Eversendai share. The RCPS will not be listed, quoted and traded on Bursa Securities or any other stock exchange,” the group said.

It added that the issue price of 30.5 sen per RCPS was determined after taking into consideration among others, the five-day volume weighted average market price of Eversendai shares up to yesterday.

Vahana Offshore through its subsidiaries is involved the operation, chartering and management of liftboats, marine vessels, tugs and barges, the filing showed. The firm owns one unit of operating liftboat dubbed “Vahana Aryan” and another unit of liftboat named “Vahana Arjun” which is currently under construction.

Eversendai said the acquisition may reasonably be expected to contribute 25% or more of the net profit of the group and diversion of 25% or more of the net assets of the group, going forward.

“Upon completion of the proposed acquisition, the Eversendai Group will venture into the liftboat business. In this regard, the company wishes to seek the approval of the shareholders of the company at its forthcoming extraordinary general meeting for the proposed diversification,” it said.

Eversendai said its diversification into the liftboat business offers more opportunities to market its core expertise to energy players.

“Subject to the approvals of the relevant authorities being obtained, the board expects the proposals to be completed by the fourth quarter of 2020,” it added.

Eversendai shares settled half a sen or 1.75% lower at 28 sen today, for a market capitalisation of RM218.71 million.

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