Singapore’s EMS Energy to acquire majority stake in Vietnam’s Nosco Shipyard

Singapore’s Catalist-traded EMS Energy will acquire a 52.76 per cent stake in Vietnam-based Nosco Shipyard from NVS Holdings, an affiliate owned by EMS Energy chairman, and a local firm called Son Truong.

The consideration for the purchase will include issuance of new EMS shares at 0.15 Singapore cent per share, subject to its shareholders’ approval. The price represents a 93.2 per cent discount to the last traded price of the company’s shares before being suspended in late 2016.

Meanwhile, EMS said earlier this year that it planned to issue 11.06 billion new shares at $16.6 million for the stake in Nosco.

EMS said the acquisition will help it diversify into the new business of ship repair, module construction and ship-building. Its existing business is offshore and marine engineering, which continues to “face headwind in an increasingly challenging and competitive environment”, it said.

“The proposed diversification will reduce the group’s reliance on its existing business and the impact of its existing business performance on its profitability.”

Nosco recorded an unaudited net tangible assets value of more than VND400 billion (S$23.34 million).

EMS said the Vietnam-based asset could potentially resolve its financial and business viability issues, with fully operational shipyard with immediate cash flow and a new experienced management team being appointed in March 2019, coupled with sizeable demand for ship repairing.

Nosco operates a 100-hectare industrial land with a 50-year lease, of which 50 hectares are currently used for the business of ships repairing, ships and other marine assets construction and recycling. The remaining 50 hectares of land is currently vacant and is authorised for future expansion.

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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.