Ezion clinches $103 million deal, raises $30 million through issue of preference shares

Offshore services provider Ezion Holdings has received a letter of intent to provide a service rig to be used by a Southeast Asian-based national oil company.

The deal is worth up to about US$82.1 million (S$103.3 million) over a five year period, Ezion said on Thursday.

In order to meet the requirements of the letter of intent, the group will order an additional service rig, which is expected to be deployed by the first quarter of 2015.

This will be funded through bank borrowings as well as the issuance of redeemable exchangeable preference shares, the group said.

In a separate announcement, Ezion said a wholly-owned subsidiary will issue 300 preference shares at $100,000 each.

This will raise about $29.5 million in net proceeds for the group, it added.

The buyers of the preference shares are existing investors of the company. Two are private equity investment companies incorporated in Singapore and managed by Evia Capital Partners, while another three are Singapore-incorporated private equity funds managed by Venstar Capital Management.