CATALIST-LISTED offshore and marine engineering firm, EMS Energy, on Thursday said it has executed a definitive sale and purchase agreement to acquire a 52.76 per cent stake in Vietnamese shipyard, Nosco Shipyard Joint Stock Company.
In particular, the board believes that the proposed acquisition would allow it to acquire a new business that could"potentially resolve its financial and business viability issues". After taking into consideration the target's fully operational shipyard with immediate cash flow, a new experienced management team appointed in March 2019, and the market demand for ship repairing, EMS is of the view that the target can contribute to its revenue and profits, the company said.
In a regulatory filing on Thursday, EMS noted that the financial effects of the acquisition cannot be determined as of yet, since the actual number of securities to be issued as consideration can only be determined following the independent equity valuation.11.06 billion new EMS shares worth S$16.6 millionAs at end December 2018, the net asset value of the target company was about 400.2 billion Vietnamese dong , with net tangible assets of the same amount.
On March 8 this year, SGX-ST granted EMS a further extension till June 30, 2019 for it to submit a resumption proposal. No further extensions will be granted.