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MMA Offshore to acquire Neptune Marine Services business

Source: www.gulfoilandgas.com 7/24/2019, Location: Not categorized

• MMA Offshore Limited (“MMA”) to acquire the business of Neptune Marine Services Limited (“NMS”), an ASX listed subsea services provider, by acquiring its key operating subsidiaries ("Transaction")

• NMS is a leading provider of inspection, maintenance and repair solutions to the oil and gas, marine and renewable energy industries with operations in Australia, South East Asia, and the UK
• Consideration expected to total approximately $18.5 million in aggregate, which would comprise $5.0 million cash plus the issue of approximately $13.5 million1 worth of shares in MMA to NMS
• Consideration based on the assumed net asset value of the business2 and determined on a cash and debt free basis
• The acquisition will provide MMA with a strong platform to expand its subsea services business and value add to MMA’s existing subsea vessel offering
• Transaction is expected to contribute to MMA earnings in an improving market and as revenue and cost synergies are realised
• Combined business is expected to benefit from a recovery in offshore and subsea investment
• Completion of the acquisition is subject to a number of conditions including NMS shareholder approval, and the approval of the shareholders of MTQ Corporation Limited ("MTQ") of Singapore, the parent company of Blossomvale Investments Pte Ltd ("Blossomvale"), NMS's controlling shareholder, with general meetings for the purposes of seeking those approvals expected to be held in October and September, respectively
The Directors of NMS have unanimously recommended that NMS shareholders vote in favour of the Transaction in the absence of a superior proposal
• Blossomvale has indicated that, subject only to receipt of approval from MTQ's shareholders (as contemplated above and discussed elsewhere in this announcement), it intends to vote in favour of the Transaction in the absence of a superior proposal

MMA Offshore Limited announces that it has entered into an agreement to acquire the business of Neptune Marine Services Limited by acquiring NMS's key operating subsidiaries ("Sale Agreement").

The purchase consideration, which is expected to total approximately A$18.5 million, would comprise $5.0 million cash (“Cash Consideration”) with the balance of the consideration to be issued in MMA shares on completion (“Consideration Shares”).

MMA Managing Director, Mr. Jeffrey Weber, said: “The acquisition of the Neptune business represents an important step in MMA’s strategy to expand its subsea service offering to existing and new clients. Combining MMA’s vessel assets with NMS’s subsea equipment and technical expertise will result in a stronger service offering to both MMA’s and NMS’s existing clients and provide an opportunity for MMA to capture a greater proportion of the value chain. Importantly, the services that NMS provides do not directly compete with our existing clients in the sector and we continue to see these partnerships as a key platform in our subsea strategy going forward.

The acquisition is expected to enhance MMA’s return on assets through packaging value adding services to our vessels. As the offshore market improves, we expect the combined business to benefit from a recovery in offshore and subsea investment”.

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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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