Ezion - Ocean Sky International - YHM

Ezion is restructuring its marine supply base business by injecting it into Ocean Sky International (OSI SP, Not Rated). Ezion will acquire 45% of OSI through the issuance of 20.2m new shares (2.1% of enlarged share capital) at an issue priceof S$2.351 (VWAP for 24 Sep 2013). Listed on the Main Board, OSI is essentially a shell company, having recently disposed of its civil engineering, construction and property investment. The acquisition is conditional on OSI having a minimum NTA of US$30m.

 

https://cimbequityresearch.cimb.com/.../GetDocPDF.asp?DocGUID...‎

 

Ezion has proposed to acquire 440m new Ocean Sky shares at issue price of $0.108 a piece (75% discount to the last close at $0.44).

 

The consideration of $47.5m will be satisfied by the issue of 20.2m new Ezion shares (2.2% of Ezion’s enlarged share base) to Ocean Sky. Ezion last closed at $2.37

 

Ezion intends to inject its Australian marine supply base business into Ocean Sky, effectively resulting in a reverse takeover (RTO). The unit, with total net liability of A$3.8m, made a net loss of A$1.5m in FY12 and net loss of $0.7m in 1H13.

 

Ezion also intends to re-designate its existing COO, Captain Larry Glenn Johnson, as the new CEO of Ocean Sky. Ezion will also appoint its Deputy COO, Mr Lee Kon Meng Peter, as the COO of Ocean Sky. Mr Lee is responsible for Ezion’s fleet operations covering liftboats and service rigs and tug & barge operations.

 

In conjuction, Ocean Sky will issue 165m share options (exercise price of $0.108) to Ezion, and another 70m share options to Ezion’s COO, Captain Larry Glenn Johnson.

 

Ocean Sky will also carry out a 60m placement of new shares at $0.341 a piece, to raise net proceeds of $20m, primarily to fund the transaction.

The introducer, Tan Kim Seng, will receive 25m new Ocean Sky shares as payment.
Assuming full dilution effects, Ezion will end up with just over 50% stake in Ocean Sky.

The transaction, which is subject to shareholders’ approval at an EGM, will trigger a mandatory General Offer to be made by Ezion. To this end, Ezion has made an offer for all Ocean Sky shares at $0.108 each. Similar to the YHM precedence, Ezion does not intend to revise its offer price.

http://www.stockandshare.org/ezion-ocean-sky/


CHEW Thiam Keng, CEO of offshore services provider Ezion Holdings, is taking control of YHM Group and preparing to transform it into something more interesting. But investors thinking about jumping in now would need a strong appetite for risk.

http://sg.finance.yahoo.com/news/yhm-soars-ezion-moves-investors-160005301.html