Ezra’s shareholders approved today the proposed 50:50 subsea joint venture with Japan’s ECS player Chiyoda.
Singapore-listed offshore O&G contractor said that 99.97% of shareholders voted in support of Chiyoda’s investment in its subsea services division, EMAS AMC, to form EMAS CHIYODA Subsea (ECS).
According to memorandum of understanding (MOU), signed in August between the two companies, the transaction implies an aggregate deal value for EMAS CHIYODA Subsea of approximately USD 1.25 billion.
Furthermore, as part of the joint venture, Chiyoda will pay Ezra a USD 150 million cash consideration and inject additional USD 30 million capital into EMAS CHIYODA Subsea. Ezra will also capitalise part of its existing intercompany debt owed by EMAS.
“We are delighted by the show of support from shareholders for this partnership with Chiyoda. Our shareholders’ confidence in our partner and EMAS CHIYODA Subsea stands as a testament to the ongoing strategy to accelerate the growth of our subsea services business. With the benefit of an expanded expertise in EPCI projects, we look forward to greater opportunities and conquering new challenges,” said Lionel Lee, Group CEO and managing director of Ezra.