Mermaid Subsea Services (MSS) has increased its shareholding interest in Subtech Saudi Arabia from 70% to 95%.
This consolidation took the form of an acquisition by MSS of 30% of the shares in Subtech Saudi Arabia from General Technology & Systems (Gentas) followed by the sale of 5% of the said shares by MSS to a local partner, Integrated Trading Services Establishment (ITS).
The aggregate consideration to Gentas is USD 300,000 and was paid as part of an advance payment made to Gentas as previously disclosed in the 2013 annual report. The sale to ITS was made on a pro-rated consideration basis.
As a result of this sale, the Mermaid Maritime now holds an indirect 95% interest in Subtech Saudi Arabia. Subtech Saudi Arabia is also in the process of being renamed Mermaid Subsea Services (Saudi Arabia).
Subtech Saudi Arabia has a total of 5,000 issued ordinary shares with a book value and net tangible asset value per share of USD 11.38 and USD 7.22.
Press Release, October 08, 2014; Image: Subtech