Vahana offer to merge with Eversendai

KUALA LUMPUR (Feb 10): Eversendai Corporation Bhd (Eversendai Group) founder Tan Sri AK Nathan has proposed to inject his own company Vahana Holdings Sdn Bhd's (Vahana Group) liftboat business into the former, which is involved in oil and gas and construction, the Star reported today.

Vahana Group today issued a letter of offer to Eversendai Group for the proposed injection of 100% of Vahana Offshore Sdn Bhd (Vahana Offshore).

Vahana Offshore owns the entire issued and paid-up share capital of Aryan-Inspire Pte. Ltd. (“Aryan”), Arjun-Aspire Pte. Ltd. (“Arjun”) and Vahana Marine Solutions DMCC (“VMS”).

According to the Star, Vahana Offshore owns and operates a self-propelled jack-up barge or also known as liftboat which is used for maintenance, workover, well-service activities, hook-up, commissioning and decommissioning of offshore platforms in the oil & gas industry.

Presently, Aryan owns and operates a completed liftboat, which is a large liftboat with the latest specifications and technology. Arjun will also own another liftboat with similar specifications and technology as Aryan's liftboat. Arjun's liftboat is currently being constructed and the construction of which is targeted to be completed by mid 2021.

VMS has secured long term time charter contract with Zamil Offshore for Saudi Aramco for the charter of the liftboat owned by Aryan. It also secured a similar contract with the same party for the liftboat owned by Arjun.

In a statement to the media, Vahana Offshore said: "The proposed offer by Vahana Group provides an opportunity to Eversendai Group to acquire state of the art liftboat assets together with secured long-term time charter contracts deployed in the Oil & Gas Industry."

"Vahana Aryan, the liftboat owned and operated by Aryan is expected to be highly profitable and will contribute positively to Eversendai financial performance. Further, the proposed offer will enable Eversendai to build a recurrent income business segment and eliminate related party exposure."

The statement also said the proposed offer is conditional upon Eversendai Group and Vahana Offshore executing a definitive agreement within 30 days from the date of offer which the agreed purchase consideration will be determined based on willing buyer and willing seller basis, satisfaction of due diligence and relevant regulatory and shareholders’ approval.

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