Swiber Ups Stake In Atlantis Navigation AS
Swiber Holdings announced that its subsidiary, Swiber International, has entered into a share purchase agreement to acquire a further 49.5 percent interest in Atlantis Navigation AS for approximately US$18.3 million. With the purchase, Swiber will hold 98.8 percent interest in the investment holding that owns two vessels and has a net tangible asset value of US$30.6 million. This move came shortly after the company reported a 66 percent surge in 2Q12 net profits to US$20.9 million on the back of a 27.1 percent jump in revenue to US$229.6 million, driven by progressive revenue recognition from offshore construction projects. Notably, Swiber boasts a robust order book of US$1.6 billion, including about US$1 billion new contracts secured this year from oil majors for projects in Mexico, Middle East, Southeast Asia and South Asia.
Significance: Swiber noted that increasing its stake in Atlantis Navigation AS is a “strategic effort undertaken to give Swiber full control over the latter’s assets as well as recognising its full contribution”. Furthermore, its strong order book continues to provide stable earnings visibility beyond 2013.
Otto Marine Sells 75M Work Vessels For US$38m
Otto Marine, an offshore marine group specialising in the subsea and deep sea segment, announced that it has sold a 75M work maintenance vessel for US$38 million. According to Otto Marine, 10 percent of the Purchase Consideration has been paid by the buyer, with the balance to be paid upon delivery of the vessel which will be around the end of August 2012. Upon the completion of the sale, the company’s other subsidiary will enter into a bareboat charter agreement with the buyer for a charter of the vessel for a period of five years. Meanwhile, Otto Marine’s earnings for the three month periods ended June 2012 remained red at US$32.1 million despite a 143.8 percent jump in revenue. The firm cited in financial report that the global economic conditions and the general environment of the shipbuilding industry will be remain challenging.
Significance: With a gloomy outlook for the shipbuilding industry, the aforesaid news did excite investors given that the transactions are expected to have a positive impact on Otto Marine’s consolidated net tangible assets per share or earnings per share for FY12.
Tycoon Goh Plans To Take Superior Multi-Packaging Private
Tycoon Goh Cheng Liang’s investment vehicle, Pianissimo, and a Singapore unit of US-listed Crown Holdings are offering $0.14 per share in cash to take Superior Multi-Packaging Private, valuing the firm at $51.8 million. The offer is being made through Crown Speciality Packaging Investment, of which Crown Asia Pacific Holdings owns 60 percent. Pianissimo, in which Goh is a director, owns the remaining 40 percent. The offeror intends to compulsorily acquire the rest of the target company if its shareholding reaches 90 percent.
Significance: The bid is said to be an “attractive premium” to Superior Multi-Packaging’s historical trading level. Notably, the bid represents a 66.7 percent premium to the firm’s 15 August close of $0.084, which was also the last trading price before the offer was announced. Furthermore, the share have been thinly traded with the shares have not traded above 14 cents since 2008.