Siem, Daya work out new terms for OSCVs sale. One vessel cancelled

  • Business & Finance

Norway’s Siem Offshore (SIOFF) and Malaysia’s Daya Materials Berhad have negotiated their terms for the sale of two DP2 Offshore Subsea Construction Vessels (OSCVs) Siem Daya 1 and Siem Daya 2 whereby the sale of the second vessel has now been cancelled. 

According to the previous agreement, the two vessels were to be sold for $140 million each.

According to the new agreement, SIOFF has agreed to sell Siem Daya 1 to Daya for $120 million. In addition, SIOFF is entitled to a 60/40 profit share in SIOFF’s favour based on the profit Daya makes on the vessel limited to an additional $10 million.

A deposit of $10 million is to be paid within June 30, 2015. Cancelling date is August 31, 2015. SIOFF says that $30 million of the purchase price for the vessel will be financed by a sellers credit from Siem Offshore in the form of a convertible bond to Daya Materials Berhad with 4 years duration and a coupon of 5%, and a conversion price of 15 Malaysian sen per share.

Both vessels are on long-term charters to Daya.

Siem Daya 2

The companies have also agreed to reduce the charter rate for Siem Daya 2 to $55,000 per day with a day rate of $45,000 being applicable in the event the vessel is in lay-up and a catch up rate which would secure a day rate of up to $60,000 per day provided the vessel operates profitably for Daya. The charter party for Siem Daya 2 has further been extended with one year.

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