CIMC Enric has struck a deal with Evergreen Holding and its subsidiaries to acquire Nantong Sinopacific Offshore Engineering (SOE) for at least CNY700 million (USD109 million) in cash and shares.
The minimum value of the deal works out to be 71% of SOE’s net asset as of end of 2014, a stock filing of CIMC Enric said on 27 August.
On 15 August, CIMC Enric, a subsidiary of China International Marine Containers (CIMC), entered memorandums of understanding with Sinopacific Shipbuilding and Evergreen Holding Group to acquire all stake in SOE. Evergreen Holding is the parent company of Sinopacific Shipbuilding.
Evergreen Holding will receive CNY443 million in cash after the completion of the first phase of the acquisition. In addition, it will be allocated 65 million shares in CIMC Enric at HKD4.69 per share after the completion of the second phase of the acquisition.
Also, Evergreen Holding will receive CNY250 million in cash as prepayment from CIMC Enric, which is refundable.
In 2014, the profit of SOE fell 1% year on year to CNY21 million.
“In line with the company’s development strategy to expand in the value chain for natural gas equipment and services from onshore to offshore and from downstream to upstream, the acquisition will facilitate the company in building its integrated capabilities for purification, liquefaction, storage, and transportation of natural gas both onshore and offshore,” CIMC Enric said.
This post was sourced from IHS Maritime 360: View the original article here.
