Vallianz bags new charter contracts

Singapore’s Vallianz Holdings Limited has clinched Letters of Award and new charter contracts with a total value of US$64 million in Mexico, West Africa and the Asia Pacific region.

The Group will be supplying vessels ranging from anchor handling tug supply vessels (AHTS), platform supply vessels (PSV) and barges for periods of up to 3 years.

Chief Executive Officer of Vallianz, Darren Yeo said, “These Letters of Award and new charter contracts mark our entry into Mexico and West Africa which is in line with the Group’s strategy to diversify our geographical presence. Our success in securing these contracts can be credited to our team’s unrelenting efforts to develop the Group’s presence in these two fast growing offshore oil & gas exploration markets, which will pave the way for Vallianz to make further inroads in these key markets.”

The new contracts also include the supply of vessels to projects in Asia Pacific. The contracts are expected to contribute positively to Group’s financial performance from its next financial year ending 31 December 2015 (“FY2015”).

EBITDA Target for OER

Vallianz has also informed that an earnings before interest, tax, depreciation and amortization (“EBITDA”) target has been established in relation to its proposed US$27.7 million acquisition of OER Holdings Pte. Ltd. which was announced on 30 September 2014.

OER is a supplier of professional crew and related hospitality services to the offshore industry. The purchase consideration for OER is to be satisfied by the issue of 250 million ordinary shares in the capital of Vallianz at a price of S$0.14 per share. Under a supplemental agreement to the proposed acquisition, the vendor of OER has agreed to receive 125 million Vallianz shares or half of the 250 million consideration shares on completion of the acquisition.

The balance of Vallianz shares, subject to any anti-dilution adjustments, will only be issued to the vendor provided that the EBITDA of OER will be not less than US$7.0 million for the 14 month period from 1 November 2014 to 31 December 2015 (“EBITDA Target”).

Yeo said, “The additional terms in the supplemental agreement reflect the vendor’s confidence that OER will be able to contribute positively to our Group’s future financial performance. The vendor’s acceptance of a two-tranche share issue based on the EBITDA Target also clearly demonstrates his conviction in the overall prospects of Vallianz.”

Vallianz Holdings Limited is a provider of offshore support vessels and integrated marine solutions to the oil and gas industry.

Press Release

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