Ezion takes stake in Ausgroup, plans to collaborate on projects

SINGAPORE - Offshore and marine group Ezion Holdings has bought a substantial shareholding in marine and offshore services firm Ausgroup.

Ezion acquired 39.9 million shares in Ausgroup on Apr 3, giving it a 6.9 per cent stake in the company, Ausgroup said on Wednesday.

Ezion also agreed to subscribe for 110 million share options in Ausgroup. Each option can be used to subscribe for one Ausgroup share at an exercise price of 36.75 cents apiece.

Meanwhile, Ezion and Ausgroup have signed a memorandum of understanding to explore and pursue opportunities for collaboration.

These include providing logistics supply chain and related support services in Australia, such as in the oil and gas and resources industries and marine industries.

Ausgroup plans to issue and place up to 70 million new shares at 36.75 cents per share to fund the proposed collaboration, it said.

The company also intends to appoint three new directors: two nominated by Ezion and one independent director.