NYK forms strategic partnership to invest in subsea business


NYK forms strategic partnership to invest in subsea business

Japan’s NYK will take up a 25% interest in joint venture firm EMAS Chiyoda Subsea (ECS) as it seeks to expand its offshore business.

ECS is currently a 50-50 joint venture between Singapore’s subsea services firm Ezra and Japan’s engineering firm Chiyoda Corporation.

The investment by NYK will see NYK own 25% of ECS, with Ezra and Chiyoda retaining 40% and 35% shareholding respectively.

NYK has signed a binding agreement to purchase ECS shares and the transaction is expected to be completed by the third quarter of 2016.

Upon completion of the deal, EMAS AMC, the subsea operating brand of Ezra, will contribute $36m in working capital to ECS, while Chiyoda and NYK will contribute $11.67m and $8.33m respectively, making it a total of $56m.

“I am delighted that we can offer another range of service in offshore segment by joining into ECS,” said Tadaaki Naito, president, president corporate officer of NYK. “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.”

ECS is a relatively young firm formed in March this year after Chiyoda took a 50% stake in EMAS AMC from its parent Ezra.

Source from : Seatrade Global