Emas Offshore is in talks with a Philippine corporation over a potential investment of $73 million.
Emas said it had signed a non-binding term sheet over a potential investment with Udenna Corporation.
Udenna, based in the Philippines has businesses across distribution and retailing of refined petroleum products, shipping & logistics, property development, infrastructure development, hospitality, and educational institutions.
Under the term-sheet, Udenna will have exclusivity of five weeks from 29 October 2018 to conclude satisfactory due diligence, propose and conclude mutually acceptable terms and conditions that would be subject of a formal binding agreement in respect of the Proposed Transaction.
Under the Non-Binding Term Sheet, it is envisaged that the Proposed Transaction would entail an aggregate investment amount of $73.29 million for the acquisition of certain vessels owned by Emas Offshore that are currently secured to various bank lenders of the group and for the vessels to be owned by the group “without any encumbrance, mortgage or security interest at the close of the Proposed Transaction.” The transaction would also lead to an investment into Emas Offshore.
“Shareholders should note that there is no certainty or assurance as at the date of this announcement that any binding term sheet will be entered into or the Proposed Transaction will be completed. When in doubt as to the action they should take, shareholders should consult their financial, tax or other advisers,” Emas said.