Ezion Holdings - OCBC Investment 2016-11-15: Takes over JV rigs with Swissco

Ezion Holdings - OCBC Investment 2016-11-15: Takes over JV rigs with Swissco EZION HOLDINGS LIMITED 5ME.SI

Ezion Holdings - Takes over JV rigs with Swissco

  • With Swissco Holdings filing for judicial management, Ezion Holdings has sent letters of offer to Swissco to acquire the business related to their three 50-50 JV rigs. This includes 
    1. the rigs, 
    2. all titles, rights, claims (including accounts receivables), and 
    3. obligations arising out of the bareboat charters. 
  • The proposed aggregate consideration includes 
    1. the outstanding bank loans owed by the JVs, 
    2. any amount advanced or to be advanced by Ezion for repaying bank loans, 
    3. S$9m cash consideration (Swissco’s share is S$4.5m). 
  • Swissco has accepted the offers, subject to written contracts, negotiation and execution by both parties. 
  • This is not a surprise as the writing had already been on the wall with signs that Swissco’s debt restructuring may not go through. 
  • Pending more details such as the amount of rig impairments and the final purchase value, we maintain our HOLD rating with S$0.35 fair value estimate on Ezion.




Low Pei Han CFA OCBC Investment | http://www.ocbcresearch.com/ 2016-11-15
OCBC Investment SGX Stock Analyst Report HOLD Maintain HOLD 0.350 Same 0.350




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