Ezion sells another liftboat to repay bank loans

Singapore’s liftboat provider Ezion Holdings has agreed to sell another liftboat shortly after selling the Teras Conquest 7, this time for a price tag of about $18.5 million.

Ezion said on Friday that Teras Conquest 9 Pte Ltd (TC9PL), a wholly-owned subsidiary of the company, and SLH (Tianjin) Ship Leasing entered into a memorandum of agreement for the sale of the liftboat Teras Conquest 9.

The MOA was executed by United Overseas Bank Limited as attorney-in-fact of TC9PL, pursuant to powers of attorney granted to United Overseas Bank Limited as mortgagee under certain financing agreements in respect of the vessel.

The buyer is a company incorporated in China and is mainly involved in the business of marine engineering for offshore platforms, electric instrument systems, hull engineering for luxury cruise ships and manufacturing of marine power distribution and lighting system equipment, as well as the chartering of marine vessels to support offshore operations.

Ezion said that the consideration received from the disposal will be used to repay the secured bank loans of the group. The mortgage over the vessel will be discharged pursuant to the disposal.

Ezion has also recently sold the Teras Conquest 7 liftboat to Elite Point for a total cash consideration of $13 million.

Elite Point is a company incorporated in Singapore and is in the business of chartering ships, barges and board with crew.

Only days after the agreed sale to Elite Point, Malaysia’s Coastal Contracts and its strategic business partner, JUB Pacific, acquired 80 per cent and 20 per cent equity interest in Elite Point, respectively.

Coastal Contracts and JUB Pacific announced their entry into the liftboat chartering business with plans to pursue expansion in the oil and gas market as well as venturing into the offshore wind market.

The Teras Conquest 7 was expected to start its charter immediately upon completion of the acquisition, serving one of the National Oil Companies in the Middle East.