CMIC Ocean En-Tech Holding Co., Ltd.
[CMIC Ocean 206.HK] Expanded Business Presence and Obtained Stable Cash Flow through the Rigs Transactions Entered by its JV
【For Immediate Release】 4 March 2019
Became a Shareholder of Shelf Drilling through the Rigs Sale Transactions Entered by its Joint Venture The agreements are as follows: (1) Shelf Drilling has agreed to purchase and the JV has agreed to sell two premium CJ46 Jack-up rigs for a total consideration of US$174 million, of which US$150 million will be paid in cash and US$24 million will be paid in new common shares of Shelf Drilling; (2) JV has agreed to subscribe for new common shares issued by Shelf Drilling for a total consideration of US$24 million, at a per share price of US$6.50; and (3) JV has agreed to charter two additional premium CJ46 Jack-up rigs to Shelf Drilling and its subsidiaries with an option to purchase said rigs. Management of CMIC Ocean En-Tech Holding Co., Ltd. said: “We believe this series of agreements would represent a good business opportunity to the Group on both the business expansion front and the capital management front. On the business expansion front, through the agreements, we have now become a shareholder of Shelf Drilling, a leading international shallow water offshore drilling contractor with rig operations across Middle East, Southeast Asia, India, West Africa and the Mediterranean. This will allow us to expand our business coverage and improve our goodwill, which should enhance the Group’s international exposure and reception. With the long-term strategic objective of becomomg value chain integrator for ocean energy technology industry , the agreements also lay a solid foundation for the two parties to further explore business opportunities in the future. As the oil and gas market continues its recovery, we believe that CMIC Ocean is well-positioned to reap the benefits through our offshore rigs management business. On the capital management front, the speed of reaching the agreements have demonstrated our ability and efficiency in asset revitalization, converting surplus idle inventories into competitive revenue generating assets. In addition, through the Rig Purchase Agreements, WME will be able to get US$150 million in cash, along with the two bareboat charter agreements, which will give WME a daily charter fee. These would, in return, offer a higher capital flexibility to the Group in the short-term, as well as providing a stable income stream for CMIC Ocean in the medium and longer-term. Riding on such success, the Group will continue to keep a keen eye on various opportunities, in order to deliver a greater return to our shareholders in the future.” – End – This press release is issued by DLK Advisory Limited on behalf of CMIC Ocean En-Tech Holding Co., Ltd. For enquiries, please contact: DLK Advisory Document: http://n.eqs.com/c/fncls.ssp?u=NMLWFCYXGA Document title: [CMIC Ocean 206.HK] Expanded Business Presence and Obtained Stable Cash Flow through the Rigs Transactions Entered by its JV
05/03/2019 Dissemination of a Financial Press Release, transmitted by EQS Group. |