Ezra, Chiyoda Shares Surge After $1.25 Billion Subsea VentureJoyce Koh
Ezra Holdings Ltd. and Chiyoda Corp. shares jumped the most in at least nine months after they agreed to form a subsea services joint venture valued at $1.25 billion.
Ezra rose 13 percent to S$0.13 as of 10:52 a.m. in Singapore trading, the largest intraday gain since September 2013. Chiyoda advanced 7.4 percent to 910 yen in Tokyo, the biggest advance on an intraday basis since November 2014.
Chiyoda will pay Ezra $180 million to form a 50-50 venture with the Singapore company’s subsea services business, the companies said Thursday. The transaction, which includes $30 million for new shares in the venture, will allow Ezra to expand its subsea-to-surface business and enable Chiyoda to accelerate expansion of its offshore and upstream businesses.
Shares of Ezra, which completed a rights issue last month to raise S$200 million ($143 million), have fallen amid slumping demand in the oil industry. Friday’s gain narrowed Ezra’s stock loss for the year to 59 percent, while Chiyoda has fallen 9.5 percent in the period.
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