Swissco Holdings Limited, a leading marine service provider for the offshore oil and gas industry, announced the proposed acquisition of Scott and English Energy Pte. Ltd. or approximately S$ 285.0 million, the company announces in its press release.
Swissco has entered into a legally binding heads of agreement (“HOA”) with Double Dragon Energy Holdings Limited , 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.
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 wholly - owned subsidiary of Double Dragon , which is majority - held by Kim Seng Holdings Pte. Ltd. (“KSH”).
In connection with the Acquisition, Swissco proposes to undertake a share consolidation of two shares in to one new 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 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 Swissco.
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 Manual. Swissco currently owns and operates a fleet of offshore support vessels.