VALLIANZ HOLDINGS LTD VALLIANZ HOLDINGS LIMITED
NEWS RELEASE
Vallianz Expands its Geographical Footprint with Letters of Award and New Charter Contracts Wins worth US$64 Million
• Group makes its first forays into the Mexican and West African markets
• EBITDA target of US$7 million agreed between Vallianz and vendor in relation to its proposed acquisition of OER
Singapore, 20 October 2014 - Vallianz Holdings Limited ("Vallianz", and together with its subsidiaries, the "Group"), a fast growing provider of offshore support vessels and integrated marine solutions to the oil and gas industry, is continuing to expand its global reach by clinching Letters of Award and new charter contracts with total value of US$64 million in Mexico, West Africa and the Asia Pacific region.
The Group will be supplying vessels ranging from anchor handling tug supply vessels (AHTS), platform supply vessels (PSV) and barges for periods of up to 3 years.
Chief Executive Officer of Vallianz, Mr Darren Yeo said, "These Letters of Award and new charter contracts mark our entry into Mexico and West Africa which is in line with the Group's strategy to diversify our geographical presence. Our success in securing these contracts can be credited to our team's unrelenting efforts to develop the Group's presence in these two fast growing offshore oil & gas exploration markets, which will pave the way for Vallianz to make further inroads in these key markets."
The new contracts also include the supply of vessels to projects in Asia Pacific which further entrenches the Group's position in the region. The contracts are expected to contribute positively to the Group's financial performance from its next financial year ending 31 December 2015 ("FY2015").
EBITDA Target for OER
In a separate announcement released today, Vallianz also disclosed that an earnings before interest, tax, depreciation and amortization ("EBITDA") target has been established in relation to its proposed US$27.7 million acquisition of OER Holdings Pte. Ltd. ("OER") which was announced on 30
September 2014. OER is a supplier of professional crew and related hospitality services to the offshore industry.
The purchase consideration for OER is to be satisfied by the issue of 250 million ordinary shares in the capital of Vallianz at a price of S$0.14 per share (the "Consideration Shares"). Under a supplemental agreement to the proposed acquisition, the vendor of OER has agreed to receive 125 million Vallianz shares or half of the 250 million Consideration Shares on completion of the
acquisition.
Vallianz Holdings Limited (Co. Reg. No.: 199206945E) Page 1 of 2
12 International Business Park, #03-02 Swiber@IBP, Singapore 609920 | t +65 6505 0600 | f +65 6505 0601 www.vallianzholdings.com
VALLIANZ EXPANDS ITS GEOGRAPHICAL FOOTPRINT WITH LETTERS OF AWARD AND NEW CHARTER CONTRACTS WINS WORTH US$64 MILLION
The balance of Vallianz shares, subject to any anti-dilution adjustments, will only be issued to the vendor provided that the EBITDA of OER will be not less than US$7.0 million for the 14 month period from 1 November 2014 to 31 December 2015 ("EBITDA Target").
Mr Yeo said, "The additional terms in the supplemental agreement reflect the vendor's confidence that OER will be able to contribute positively to our Group's future financial performance. The vendor's acceptance of a two-tranche share issue based on the EBITDA Target also clearly demonstrates his conviction in the overall prospects of Vallianz."
This news release should be read in conjunction with the Group's announcement posted on the SGX website on
20 October 2014.
About Vallianz Holdings Limited
Vallianz Holdings Limited is a fast growing provider of offshore support vessels and integrated offshore marine solutions to the oil and gas industry. Headquartered in Singapore, the Group provides offshore marine services to oil majors and national oil companies worldwide. Today, Vallianz owns a young fleet of over 29 offshore support vessels and covers markets in Asia Pacific, the Middle East and Latin America. To strengthen its foundation for growth, the Group is currently executing initiatives to expand its asset base and geographical reach. Besides working towards its goal of 50 vessels by 2016, Vallianz also plans to broaden its range of vessel offerings. At the same time, the Group will continue seeking opportunities and strategic alliances to increase its penetration in the major and emerging offshore oil and gas exploration markets. Listed on SGX-Catalist, Vallianz is helmed by an experienced Board and management team.
For more details, please refer to http://www.vallianzholdings.com/www.vallianzholdings.com
This news release has been prepared by the Company and its contents have been reviewed by the Company's sponsor, Stamford Corporate Services Pte. Ltd. ("Sponsor"), for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited ("SGX-ST"). The Sponsor has not independently verified the contents of this news release.
This news release has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this news release including the correctness of any of the statements or opinions made or reports contained in this announcement.
The contact person for the Sponsor is Mr. Bernard Lui.
Telephone number: 6389 3000 Email: bernard.lui@stamfordlaw.com.sg
Media and Investor Relations Contact
O c t a n t C o n s u l t i n g | p h o n e ( 6 5 ) 6 2 9 6 3 5 8 3
Herman Phua | mobile 9664 7582 | email herman@octant.com.sg
Lisa Heng | mobile 9090 9887 | email lisa@octant.com.sg
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