SINGAPORE - Oil and gas contractor Gaylin Holdings has entered into an agreement on July 7 to acquire industry peer Amos International Holdings for $48.6 million in an al-shares deal, it announced in a regulatory filing on Monday morning (July 9).
As a major transaction and one which involves an "interested person", the proposed acquisition will require the approval of Gaylin shareholders.
Amos International is primarily engaged in marine and offshore services, with operations in Singapore, Shanghai and Hong Kong.
The agreement follows the inking of a non-binding letter of intent with Lighthouse Logistics and Amos International's founder and managing director Danny Lien on March 26. Lighthouse Logistics, which holds 69.4 per cent of Amos International, is an associate of Kyle Shaw, the executive chairman and deemed controlling shareholder of Gaylin. Mr Lien holds a 27.6 per cent stake.
Under the agreement, Gaylin will buy the shares held by Mr Lien and Lighthouse. Lighthouse shall also exercise its drag-along rights to require the registered holders of all remaining shares to sell and transfer these shares to Gaylin.
The consideration for the acquisition will be fully satisfied by the issuance of new Gaylin shares at an issue price of $0.060 for each new share.
Gaylin last closed at eight cents on May 30.