Siem to Wrap Up Vessel Deal

Oslo-listed, Siem Offshore (SIOFF), informed that Daya Materials has received green light from its shareholders to implement the acquisition of offshore subsea construction vessel “Siem Daya 1”.

Namely, in April this year, Siem Offshore agreed to sell Siem Daya 1 for USD 120 million. In addition, SIOFF is entitled to a 60/40 profit share in SIOFFs favour based on the profit Daya makes on the vessel limited to an additional USD 10 million.

A deposit of USD 10 million was supposed to be paid within June 30, 2015. However, the parties have now agreed on extending the deadline for payment of the deposit for “Siem Daya 1” until July 15, 2015.

All other terms to remain unchanged, meaning that USD 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.

The Siem Daya 1 is designed for subsea operation duties such as construction and installation work, inspection and maintenance. The 120.8 meters long vessel is of Vard design and built in 2013.