Otto Marine buys remaining 10% shares in Go Marine Group

The board of directors (the “Board”) of Otto Marine Limited (the “Company”) wishes to announce that the Company has entered into a share purchase agreement (the “Agreement”) with M Squared Nominees Pty Limited (“M Squared”) to acquire (the “Acquisition”) approximately 10% of the total number of issued shares (the “Sale Shares”) in Go Marine Group Pty Ltd (“GMG”). Prior to the Acquisition, the Company’s wholly owned subsidiary, Otto Ventures Pte Ltd (“OVPL”) owned approximately 90% of the total number of issued shares in GMG, the Company said in a press release.
 
Pursuant to the Agreement, the Company will inter alia, acquire the Sale Shares as consideration for such number of new shares in the Company, the aggregate value of which is US$5 million (the “Consideration Shares”), to be issued and allotted to Mr. Garrick James Stanley (“Garrick”), the Company’s Executive Director and Group Chief Executive Officer, or such other person as may be directed by M Squared.
 
Based on the exchange rate of S$1.2507:US$1, and the closing price of the shares in the Company of S$0.07 as at 16 May 2014, 89,335,714 Consideration Shares would be issued and allotted to Garrick or such other person as M Squared may direct.
 
M Squared shall effect the transfer of the Sale Shares to OVPL (the “Transfer”) as directed by the Company. Upon the completion of the Acquisition, GMG shall become a direct wholly-owned subsidiary of OVPL and an indirect wholly-owned subsidiary of the Company.

Completion of the Acquisition is conditional upon the approval by the Board of the Transfer and the issuance and allotment of the Consideration Shares, to Garrick or such other person as may be directed by M Squared, being obtained and the shareholders of the Company having passed the resolution authorising the Board to issue shares in the capital of the Company, subject to such restrictions pursuant to the Companies Act (Chapter 50), at the annual general meeting of the Company on 30 April 2014.

Singapore-headquartered Otto Marine Limited is an offshore marine group engaged in specialized shipbuilding of offshore vessels for Deep Sea applications, ship repair and conversion. Otto Marine is chartering out its own fleet of clean/comfort class Anchor Handling Tugs and Offshore Supply vessels. Otto Marine is the majority shareholder in the seismic operator, Reflect Geophysical. The Company owns and operates one of the largest shipyards in Batam, Indonesia. Otto Marine customers are primarily deep sea and offshore operators and equipment companies who provide logistics support  and offshore services to companies operating globally in the oil and gas industry.