Ezra Holdings Ltd. will sell its offshore marine supporting operations to Oslo-listed affiliate EOC Ltd. for $520 million to concentrate on the subsea business.
EOC will pay $150 million in cash and $370 million worth of its owns shares in the transaction, Ezra said in a statement today. EOC plans a secondary listing in Singapore, it said.
The move will help Ezra focus on the growing subsea services market, where it competes with companies including Technip SA and Saipem SpA. About $128 billion is expected to be spent on new offshore infrastructure to produce oil and gas over the next 24 months, creating growth opportunities for EOC, said Lionel Lee, chief executive officer of Ezra.
EOC is looking at adding more offshore accommodation vessels to cater to increased demand as oil majors move into deeper waters for exploration, Ezra’s Lee told reporters in Singapore today.
EOC, which will change its name after the secondary listing, will own and operate 50 vessels and plans to add more to grow in Brazil and Africa, Lee said.
Ezra shares declined 0.8 percent to S$1.18 at the close in Singapore trading.