Aban Loyd has acquired a 33.76% stake in Norwegian drilling company Sinvest for $446 million. Aban Loyds Singapore-based subsidiary. Aban Singapore, a wholly-owned arm of the Chennai-based Aban Loyd Chiles Offshore, purchased 20.49m shares of Sinvest from the Skeie Group, the promoter, at a price of Norwegian Kroner 135/share, which puts the size of the deal at $446million. With this, Aban Loyd will be the single largest shareholder with a controlling stake.
Eighty per cent of the acquisition cost will be debt financed, while twenty per cent will be funded through equity. The equity component was raised by way of a $100m FCCB issue in February. A further $200m FCCB issue is in the works.
Sinvest has two operational drilling rigs. Both of these are on contract in India with Reliance and Hardy Exploration at a rate of about $200,000/day. Sinvest has six other drilling rigs on orders to be delivered over the next three years. Aban Loyd controls eight drilling rigs on its own and three more via its wholly-owned Singapore subsidiary.
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| Posted : 6/17/2006 |
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