Offshore energy services provider Jaya Holdings intends to sell the entire issued and paid up share capital of all its subsidiaries to an Australian firm for $625 million.
It said in a statement to the Singapore Exchange that the assets being sold to Mermaid Marine Australia "represent materially all of the business of Jaya."
The sale price, including the US$10 million cash held by the company, represents a gross implied value of 82.6 cents on a per share basis.
Jaya said this price represents a premium of 45 per cent to the adjusted closing share price of 57 cents on Sept 6, which was the last trading day before the announcement of the strategic review process.
The gross implied value also represents a premium of 5.5 per cent to the volume weighted average share price of 78.3 cents as of Monday.
It said the transaction is in the best interests of shareholders.
Jaya intends to distribute a significant portion of the money to shareholders via a cash dividend.
It added that the board will subsequently consider options available to the firm.
The company said the proposed transaction is a result of a strategic review process that it announced in September last year.
Jaya will call for an extraordinary general meeting of shareholders to seek approval for the deal.
Several substantial shareholders who hold about a 52.9 per cent stake of Jaya have indicated that they will vote in favour of the proposed deal at the meeting.