Japan’s NYK buys into Emas Chiyoda Subsea
- Business & Finance
Japanese company Nippon Yusen Kabushiki Kaisha (“NYK”) has decided to invest into Emas Chiyoda Subsea, a company recently established by Ezra Holdings Limited (“Ezra”) and Chiyoda Corporation (“Chiyoda”).
Through the acquisition of shares from Ezra and Chiyoda, NYK will own 25% of Emas Chiyoda Subsea, with Ezra and Chiyoda retaining 40% and 35% shareholding, respectively, upon completion of the transaction.
While the addition of Chiyoda’s complementary expertise added depth and breadth to ECS’ operational offerings when it was completed in March 2016, NYK’s participation is expected to augment the collective know-how and expertise in global expansion strategies, harnessed through NYK’s 130-year experience in ship management and operation, the companies said in a joint statement on Monday.
Tadaaki Naito, President, President Corporate Officer of NYK, said, “I am delighted that we can offer another range of service in offshore segment by joining into ECS. With reliable partners, I believe this opportunity would create strong alliance and I am excited that we would be able to contribute to worldwide offshore development, including that in our home country.”
Shogo Shibuya, President and CEO of Chiyoda Corporation, said, “Under our Medium-Term Management Plan “Seize the moment, Open up new frontiers” made in 2013, Chiyoda has been focusing on expanding its business to Offshore and Upstream field. After the establishment of EMAS CHIYODA Subsea in March 2016, today, I am excited that Ezra, Chiyoda and NYK reached the agreement for NYK to join into ECS. I am confident that the participation of NYK will accelerate the growth of ECS’s capability as a leading offshore EPCI contractor.”
Commenting on this latest strategic investment, Lionel Lee, Group CEO and Managing Director of Ezra Holdings, said, “We are extremely delighted at the latest development that has resulted from continued strategic interest in the EMAS CHIYODA Subsea business and would like to extend a warm welcome to NYK as an integral partner to the EMAS CHIYODA Subsea family. This investment by yet another established name in the offshore and marine space is a strong authentication of the strength, global standing and long-term prospects of our subsea business.”
The closing of the joint venture transaction is subject to, amongst other things, the approval of Ezra’s shareholders and the satisfaction of other customary closing conditions. Assuming these conditions are met, the transaction is expected to close by the third quarter of calendar year 2016, the companies said on Monday.