Singapore’s offshore services company EMAS Offshore Limited is seeking legal advice after Malaysia’s Perisai Petroleum moved to activate a previously agreed put option which would force Emas to buy Perisai’s share in SJR Marine.
Namely, Perisai owns a 51 percent stake in SJR Marine, a company which owns the ‘Enterprise 3’ derrick lay barge, with Emas owning the remaining 49 percent. The two companies agreed to include a put option in 2012, under which Perisai could sell its stake to Emas $43 million.
If Perisai elects to exercise the put option, which is exactly what it is doing now, Emas will be obliged to buy.
Perisai had earlier served the Put Option notice to Emas on December 8, 2016, however, Emas did not follow through with the acquisition of the SJR Marine stake citing some certain “breaches” by Perisai, leading to a dispute between the companies.
The two companies then reached a provisional settlement deal to resolve the issue over the $43 million put option, whereby, Emas would pay in two installments, however, following several delays, the deal lapsed, leading Perisai to start working on executing the put option again.
According to Perisai’s statement on August 17, the company has given Emas 30 days from August 2017, to pay, under the original put option terms.
Emas said it was seeking legal advice in respect of the matters set out in the Perisai announcement.
Offshore Energy Today Staff