Keppel subsidiary to merge with Floatel International

Aqua currently holds a stake of 31.7% in Floatel, and the agreement paves the wayfor Keppel, and other shareholders of Aqua, to acquire the remaining Floatel shares at a consideration price of NOK19.50 per share.

Aqua was formed by Wideluck Enterprises, a wholly-owned subsidiary of Keppel, and Jonathan Fairbanks. The cash consideration was arrived at taking into account the share price of Floatel in the last six months, the control premium, Floatel’s new fleet and the potential synergies between Floatel’s business with Keppel’s offshore and marine business. The amalgamation agreement will be presented for the approval of Floatel’s shareholders at a Special General Meeting.

Choo Chiau Beng, CEO of Keppel, said, “Over the past year, we have gradually increased our stake in Floatel, reaching our current interest of 31.7%. This reflects our growing confidence in the long term prospects of Floatel in its ability to provide high quality floating accommodation semisubmersibles for Brazil and the North Sea. Through this amalgamation, we hope to increase our interest in Floatel, to enable us to play a more active role in growing the company.”