Jaya hit by $15.63 million claim notice from purchaser of its subsidiaries

Mainboard-listed Jaya Holdings said on Tuesday that the company had on November 30, 2014, received a claim notice from the purchaser of its subsidiaries in connection with an alleged breach of warranties under the sale and purchase agreement (SPA).

Jaya said the prchaser is claiming the sum of $15,625,000, being the cap amount agreed for all claims arising from the SPA.

The oil-and-gas services provider announced in February that it would be selling its entire business to Australia-listed Mermaid Marine Australia for $625 million.

The sale, representing all eight of Jaya's offshore support services (OSS) and offshore engineering services (OES) subsidiaries, came after a strategic review conducted by Jaya in 2013, during which it explored options to enhance shareholder value.

Jaya said on Tuesday that it is in the process of seeking further information from the purchaser on the allegations set out in the claim notice to enable it to assess the impact and merits of the claim and to consider and take all appropriate steps in response.

Jaya said it will make further announcements on any material developments in connection with this matter as and when appropriate.

In the meantime, it advises shareholders to exercise caution when dealing in the company's shares or otherwise refrain from taking any action in relation to their shares, which may be prejudicial to their interests. In the event of any doubt, shareholders should consult their stockbrokers, bank managers, solicitors, accountants or other professional advisers.