The proposed offer will enable Eversendai to build a recurrent income business segment and eliminate related-party exposure

By SHAZNI ONG / Pic By RAZAK GHAZALI

EVERSENDAI Corp Bhd’s founder Tan Sri AK Nathan (picture) has proposed to inject his privately owned liftboat business into the group that is primarily involved in the oil and gas (O&G), as well as construction ventures.

The liftboat business is currently run by Vahana Offshore Sdn Bhd, a unit of Vahana Holdings Sdn Bhd, which is owned by Nathan.

Nathan, who is also Eversendai group MD, said the proposed offer by Vahana provides an opportunity for Eversendai to acquire state-of-the-art liftboat assets, together with a secured long-term charter contracts deployed in the O&G industry.

“By doing that, the bottom line of Eversendai can showcase higher profits, and this is a recurring business which will also add on the benefits for Eversendai and the overall business,” he told reporters at a press conference in Kuala Lumpur yesterday.

Vahana Offshore is the first and only Malaysian company that owns and operates a self-propelled jack-up barge that is also known as liftboat which is used for maintenance, workover, well-service activities, hook-up, commissioning and decommissioning of offshore platforms in the O&G industry.

Nathan added that the proposed offer will enable Eversendai to build a recurrent income business segment and eliminate related-party exposure.

According to a Bursa filing yesterday, Eversendai had received an offer letter from Vahana and the major shareholder to acquire the entire issued and paid-up share capital of Vahana Offshore, which currently owns the entire issued and paid-up share capital of three Vahana Offshore subsidiaries.

Vahana Offshore owns Aryan-Inspire Pte Ltd, Arjun-Aspire Pte Ltd and Vahana Marine Solutions DMCC (VMS).

Vahana said the proposed tran- saction represents a timely opportunity for Eversendai to acquire advanced liftboat assets with secured long-term charter contracts deployed in Saudia Arabia for Saudi Arabian Oil Co.

“Vahana Offshore presently owns and operates a completed liftboat bearing the name of Vahana Aryana, which is a large liftboat with the latest specifications and technology.

“Vahana Offshore, on the other hand, is presently constructing another new large liftboat bearing the name of Vahana Arjun, with similar specifications and technology, the construction of which is targeted to be completed by the middle of 2021,” it said in the letter.

With the implementation of the proposed transaction, Eversendai will be able to diversify its existing business to include a business with a stable income, eliminate/mitigate the potential conflict of interest, cross borrowings, financial exposures and related-party transactions involving its subsidiaries.

The offer also allows Eversendai to gain the confidence of its stakeholders in respect of the new enlarged business of the group.

The proposed offer is conditional upon Eversendai 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 a willing buyer and willing seller basis, the satisfaction of due diligence and relevant regulatory and shareholders’ approval.

Eversendai’s shares closed 1.41% or half a sen lower to 35 sen yesterday, valuing the company at RM273.8 million.