Keppel says Aqua to buy rest of Floatel shares at NOK19.50 each

By ANGELA TAN

Keppel Corporation Limited said on Monday that its associated company, Aqua Pellentesque Limited, will buy the Floatel International Ltd shares that it does not already own at NOK 19.50 each.

This follows Aqua's amalgamation agreement on August 21, 2011 with Floatel to form a Bermuda exempted company.

Keppel already holds a 31.7 per cent stake in Floatel through its subsidiary, Wideluck Enterprises Limited. Wideluck is also the 50 per cent shareholder of Aqua. The remaining 50 per cent of Wideluck is held by Jonathan Fairbanks.

'The amalgamation is entered into in view of the long term attractiveness of Floatel's business which generates a recurring and stable cash flow secured through term contracts with reputable customers,' the company said in a statement.

It added that the deal will allow Floatel to be privatised via an efficient and cost-effective mechanism and to put in place a more efficient capital structure for the amalgamated company after the privatisation.

Choo Chiau Beng, CEO of Keppel, said the move reflects the company's 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," Mr Choo said.

The offer price 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.

Floatel was established in 2006 to satisfy a market demand for a new generation of offshore floatels.