Mermaid Maritime
Posted: Mon Dec 29, 2008 8:33 amMermaid buys 20% of support vessel owner
Ship, now being built, will be time-chartered to Mermaid unit, with an option to buy it
By CONRAD TAN
MERMAID Maritime Public Company's offshore services unit has bought a 20 per cent stake in the owner of a dive support vessel for US$2.16 million.
The ship, the Mermaid Asiana, which is still under construction at ASL Shipyard in Singapore, is scheduled for delivery in the fourth quarter of the group's 2009 fiscal year which ends next Sept 30.
Mermaid Offshore Services (MOS), a wholly owned subsidiary of the Thai marine services group, paid US$108,000 a share for 20 shares or a one-fifth stake in Nemo Subsea IS, a Norwegian internal partnership formed in July 2007 whose sole investment is in the Mermaid Asiana.
The purchase was funded from MOS's retained earnings.
Upon delivery, the ship - a DP2-class dive support vessel - will begin its time charter with MOS, said Mermaid.
The vessel will be bareboat chartered to Great Cormorant Maritime, a subsidiary of Robert Knutzen Shipholdings, which will operate the vessel under a time charter to MOS.
Both charters are for a period of 10 years starting from delivery of the ship to MOS, which has an exclusive option to buy the ship after the third year of charter.
Mermaid said that the purchase of a 20 per cent stake in Nemo Subsea would allow greater security over the charter of the Mermaid Asiana.
'It will also allow Mermaid to benefit from profits generated by Nemo from the vessel's bareboat charter and, if the option to purchase the vessel is exercised by Mermaid, any net proceeds from the sale of the vessel,' the company said.
Also, a 20 per cent stake in Nemo would allow Mermaid to propose a resolution to the partnership to accelerate the sale of the ship, it added.
'If such a proposal is successfully passed, Mermaid could potentially own the vessel earlier ... before the third anniversary of the charter.'
The total partnership capital of Nemo is US$12.1 million, of which US$8.1 million has already been paid, Mermaid said.
The remaining unpaid capital of US$4 million is due by May 30 next year. MOS will be responsible for contributing 20 per cent or up to US$800,000 of the still-unpaid capital, if the full remaining amount of US$4 million is needed to complete the ship.
Bangkok-based Mermaid provides drilling and sub-sea engineering services to oil and gas companies operating in South-east Asia.
Through MOS, it provides sub-sea inspection, repair, maintenance and light construction services in countries such as Thailand, Malaysia, Indonesia and Vietnam.
Ship, now being built, will be time-chartered to Mermaid unit, with an option to buy it
By CONRAD TAN
MERMAID Maritime Public Company's offshore services unit has bought a 20 per cent stake in the owner of a dive support vessel for US$2.16 million.
The ship, the Mermaid Asiana, which is still under construction at ASL Shipyard in Singapore, is scheduled for delivery in the fourth quarter of the group's 2009 fiscal year which ends next Sept 30.
Mermaid Offshore Services (MOS), a wholly owned subsidiary of the Thai marine services group, paid US$108,000 a share for 20 shares or a one-fifth stake in Nemo Subsea IS, a Norwegian internal partnership formed in July 2007 whose sole investment is in the Mermaid Asiana.
The purchase was funded from MOS's retained earnings.
Upon delivery, the ship - a DP2-class dive support vessel - will begin its time charter with MOS, said Mermaid.
The vessel will be bareboat chartered to Great Cormorant Maritime, a subsidiary of Robert Knutzen Shipholdings, which will operate the vessel under a time charter to MOS.
Both charters are for a period of 10 years starting from delivery of the ship to MOS, which has an exclusive option to buy the ship after the third year of charter.
Mermaid said that the purchase of a 20 per cent stake in Nemo Subsea would allow greater security over the charter of the Mermaid Asiana.
'It will also allow Mermaid to benefit from profits generated by Nemo from the vessel's bareboat charter and, if the option to purchase the vessel is exercised by Mermaid, any net proceeds from the sale of the vessel,' the company said.
Also, a 20 per cent stake in Nemo would allow Mermaid to propose a resolution to the partnership to accelerate the sale of the ship, it added.
'If such a proposal is successfully passed, Mermaid could potentially own the vessel earlier ... before the third anniversary of the charter.'
The total partnership capital of Nemo is US$12.1 million, of which US$8.1 million has already been paid, Mermaid said.
The remaining unpaid capital of US$4 million is due by May 30 next year. MOS will be responsible for contributing 20 per cent or up to US$800,000 of the still-unpaid capital, if the full remaining amount of US$4 million is needed to complete the ship.
Bangkok-based Mermaid provides drilling and sub-sea engineering services to oil and gas companies operating in South-east Asia.
Through MOS, it provides sub-sea inspection, repair, maintenance and light construction services in countries such as Thailand, Malaysia, Indonesia and Vietnam.
