Singapore: NauticAWT acquires MESPL for $594k

Visual of MESPL website. October 2015.

NauticAWT has entered in a sale and purchase agreement to acquire the entire issued and paid-up capital of Marine Engineering Services Pte Ltd (MESPL)  for an aggregate consideration of S$850,000 ($594,700) from parent firm IMC Offshore Engineering.

Singapore-based MESPL is principally engaged in the business of providing facilities and project engineering services for the marine and offshore oil and gas industries. According to NauticAWT, this acquisition is a supplementary deal that will help expand its core business operations within the subsea and surface facilities business segment.

MESPL has been collaborating with NauticAWT to provide topside and facilities engineering services on a jacket requalification project located in the Khafji Joint Operations area of Saudi Arabia and Kuwait.

The purchase of the firm is being funded by the internal resources of NauticAWT – proceeds from the IPO – as well as bank borrowings.

According to a filing dated 2 October 2015, MESPL has an issued and paid-up capital of S$20,110 comprising 200 ordinary shares. Based on the audited financial statements of MESPL for the financial year ended 31 December 2014 (FY2014), the net tangible liability value was approximately S$7.2 million with a net loss of approximately S$2.8 million.

Assuming that the waiver of indebtedness had taken effect on 31 December 2014, the net tangible asset value of MESPL is approximately S$1.4 million as of FY2014, with a net profit of approximately S$5.8 million.

The aggregate consideration for acquisition is being satisfied via a mixture of cash payments amounting to S$500,000 and the  issuance and allotment of a number of new shares in the capital of NauticAWT with an aggregate value of approximately S$350,000 no later than 3 December 2015.

This is based on an issue price representing a 10 per cent discount to the 30-day volume weighted average price of NauticAWT’s shares for trades done on Catalist immediately prior to but excluding 1 December 2015.

The consideration paid for the firm in light of these financials suggests that NauticAWT saw this as a chance to expand their portfolio by purchasing what is, in essence, a distressed asset that could benefit their business portfolio.

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NauticAWT ‘s IPO 6.1 times oversubscribed, opens 75% higher in Catalist debut

NauticAWT IPO expected to raise S$2.8m

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.

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.