Through its wholly owned subsidiary Wanax AS, S.D. Standard Drilling Plc., will
acquire the Havyard 832 PSV vessel Olympus (the "Vessel"). All terms have been
agreed and there are no further conditions. The Vessel is a large PSV, built at
Havyard Ship Technology AS, Norway, in 2014, with 800m2 deck space. The Vessel
has been acquired for a total consideration of USD 8.1 million, which will be
financed by available cash.
The acquisition is expected to be completed within 10 business days.
The Vessel was sold through a court process by the Admiralty Marshal, Supreme
Court, Gibraltar. The Vessel has previously been working in the UK sector and
North Sea and will be available for charter from completion of the transaction.
After the transaction, Standard Drilling has 100% ownership of six large-size
modern PSVs. In addition, the Company has invested in 9 mid-size PSVs, bringing
the total fleet of partly and fully owned vessels to 15 PSVs, including one
vessel on a bare-boat contract. The acquisition will further strengthen the
Company's investment in the PSV market and is in accordance with its strategy to
seek for additional opportunities in the market.
"We are very pleased with the acquisition of the Vessel. The Vessel is favorably
priced at ~USD 8.1 million, representing a discount of ~82 % to USD 44 m
estimated newbuild price and a discount of ~77% to the 25-year current newbuild
parity of a 5 year old vessel with an implied value of ~USD 35.2m. Furthermore,
the Norwegian built Vessel, which is well-recognised and attractive among
charters with a proven design, is in very good condition" says Martin Nes,
Chairman of the Company.
Fletcher Shipping ("Fletcher") will be acting as technical and commercial
manager for the Vessels.
The Company currently has a cash holding of approximately USD 36 million before
the purchase and payment of the Vessel. This includes cash held by S.D Standard
Drilling Plc including through its pro-rata ownership of cash in subsidiaries
and investments. Of the cash holding of ~USD 36 million, ~ USD 20 million in
cash is held in SDSD and its subsidiaries, whereof ~USD 16 million is held by
the Company. Further, approximately USD 16 million constitutes the Company's
pro-rata portion of cash held by companies that SDSD has invested in. In its
financial reporting, the Company only reports the cash holding in SDSD(i.e.
currently USD ~16 million).
No agreements have been entered into that are for the benefit of members of the
management or board of directors of neither the Company nor Wanax AS in
connection with the acquisition of the Vessel. The Vessel has not been subject
to separate financial reporting, nor been held through a single purpose vehicle.
This stock exchange notice is published in accordance with the requirements for
detailed stock exchange announcements pursuant to section 3.4 of the Continuing
Obligations for companies listed on Oslo Børs.
For further information please contact:
General Manager, Evangelia Panagide at +357 99 77 11 16, or ;
Chairman of the Board, Martin Nes at +47 92 01 48 14
S.D. Standard Drilling plc published this content on 24 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 24 April 2019 14:27:12 UTC