O&G Dealbook: Daya Materials to buy $120m subsea construction vessel, Uni-Asia buys $18.1m box ship

Visual from the company website

Oil and gas player Daya Materials Bhd has successfully gained shareholders’ approval for the purchase of a dynamic positioning class 2 offshore subsea construction vessel, known as “Siem Daya 1” for $120 million.

The vessel will be acquired from Siem Offshore Rederi AS, and it will be paid for via cash ($90 million) and the issuance of ringgit-denominated bonds equivalent to $30 million in nominal value to Siem Offshore.

The group has secured $80 million in borrowings from a financial institution to fund most of the cash portion of the purchase consideration, while the balance will be paid via internally generated funds.

The proposed acquisition of Siem Daya 1 will enhance the operating cost structure of the vessel and contribute positively to the Daya’s earnings, the group said in a statement.

“There are two levels of savings with this purchase. Firstly, we renegotiated the acquisition cost from $140 million down to $120 million. Secondly, by purchasing this vessel, we are actually saving roughly $9.8 million per year in operating costs, which will be of direct benefit to our bottom line. This acquisition is also in line with our strategy to own operating assets in order to expand our range of subsea services and capabilities in offshore oil & gas operations,” group CEO TS Lim said.

The group had previously intended to acquire both Siem Daya 1 and Siem Daya 2 for a purchase consideration of $140 million each. However, due to the recent economic climate and the uncertainties in the oil prices, the group felt it was prudent to acquire only one vessel.

Daya has signed a long term charter contract with a major European client for Siem Daya 1. The group will continue to secure spot charters to mitigate the non-utilisation of the vessel.

Shareholders also approved the disposal of up to 50 per cent equity interest in Daya CMT Sdn Bhd, a 70 per cent-owned subsidiary of DMB – in line with the company’s strategy to dispose its non-core assets in order to streamline its business focus and be a full-fledged oil & gas player.

Uni-Asia’s new containership

Separately in the regional oil and gas industry, Uni-Asia Holdings has acquired a 3,500 TEU second-hand containership from Fortitude Containership S.A. for $18.1 million through the former’s new subsidiary Fortuna Containership.

According to a filing with the Singapore Exchange, Fortitude Containership S.A. is wholly owned by Akebono Fund, a private shipping fund which Uni-Asia currently invests in and manages.

The containership was delivered on June 30, 2015 and is scheduled to be time chartered out to a reputable charterer on July 7, 2015.

Fortuna Containership was incorporated by Uni-Asia in Panama on May 20 with an authorised share capital of US$10,000 for  the sole purpose of being a vessel owner.

Uni-Asia is an alternative investment company which specialises in the financing of properties and vessels. The acquisition of Fortuna Containership was made with Uni-Asia’s internal funds.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.