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Ezion acquires existing JVs & assets in efforts to improve earnings

Michelle Zhu Published on Tue, Mar 28, 2017 / 7:54 AM GMT+8

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SINGAPORE (March 28): In a bid to improve its long-term earnings and reduce costs, Ezion Holdings has acquired its remaining 50% equity stakes in existing joint venture (JV) companies Strategic Offshore (SOL) and Strategic Excellence (SEL) for $3.5 million and $1.5 million respectively.

For the purpose of acquiring certain assets from the subsidiaries of SOL, the group has also established three wholly-owned subsidiaries in Labuan, Malaysia, for US$2 ($2.80) each, namely Teras Atlas (TAL), Teras Fortuna(TFL) and Teras Orizont (TOL) – all three of which are principally engaged in rig owning and the provision of rig services.

Through the three new subsidiaries, Ezion will be acquiring a vessel, charter contract and receivables each from SOL’s subsidiaries GSP Atlas Limited (GAL), Strategic Fortuna (SFL) and GSP Orizont (GOL) for the respective sums of US$18.7 million, US $24.5 million and US$18.7 million, in addition to charter and payment guarantees from GAL and GOL.