Ezra Holdings, Chiyoda Corporation and Nippon Yusen Kabushiki Kaisha (NYK) have entered into a binding agreement for NYK to invest in EMAS CHIYODA Subsea (ECS), which is currently a 50:50 joint venture company owned by Ezra and Chiyoda.
Through the acquisition of shares from Ezra and Chiyoda, NYK will own 25% of ECS, with Ezra and Chiyoda retaining 40% and 35% shareholding, respectively, upon completion of the transaction.
NYK’s participation is expected to augment the collective know-how and expertise in global expansion strategies, harnessed through NYK’s 130-year experience in ship management and operation.
Tadaaki Naito, President, President Corporate Officer of NYK, said, “I am delighted that we can offer another range of service in offshore segment by joining into ECS. With reliable partners, I believe this opportunity would create strong alliance and I am excited that we would be able to contribute to worldwide offshore development, including that in our home country.”
Lionel Lee, Group CEO and managing director of Ezra Holdings, said: “We are extremely delighted at the latest development that has resulted from continued strategic interest in the EMAS CHIYODA Subsea business and would like to extend a warm welcome to NYK as an integral partner to the EMAS CHIYODA Subsea family. This investment by yet another established name in the offshore and marine space is a strong authentication of the strength, global standing and long-term prospects of our subsea business.”
The closing of the joint venture transaction is subject to, amongst other things, the approval of Ezra’s shareholders and the satisfaction of other customary closing conditions
Assuming these conditions are met, the transaction is expected to close by the third quarter of calendar year 2016.