Lamprell Proposes JV with Saudi Aramco, Bahri, Hyundai Heavy Industries
31 May 2017 - 4:44PM
Dow Jones News
LONDON--Oil and gas services firm Lamprell PLC (LAM.LN)
Wednesday proposed a joint venture agreement with Saudi Aramco
Development Company, the National Shipping Company of Saudi Arabia
(Bahri) and Hyundai Heavy Industries Co. Ltd.
Lamprell said the parties have agreed to participate in a joint
venture or JVCo with respect to the establishment, development and
operation of a maritime yard for the construction, maintenance and
repair of offshore drilling rigs and vessels which is to form part
of the complex known as "The King Salman International Complex for
Maritime Industries & Services" in the eastern province of the
Kingdom of Saudi Arabia.
Lamprell said it will invest up to a maximum of $140 million
over the course of the construction of the Maritime Yard from
existing financial resources and future cash flows and will hold
20% of JVCo's issued share capital.
Saudi Aramco will invest up to a maximum of $350.7 million,
Bahri to invest up to a maximum $139.3 million and HHI is to invest
up to a maximum $70.0 million, they will hold 50.1%, 19.9% and
10.0% of JVCo's issued share capital, respectively.
The aggregate cost of constructing the Maritime Yard is expected
to be approximately $ 5.2 billion, of which $3.5 billion will be
funded by the Government of the Kingdom of Saudi Arabia to
establish, prepare and construct the site and shared
infrastructure. The remaining cost of up to $1.7 billion, relating
to the specific requirements of each zone, will be funded by
JVCo.
Lamprell said it has received confirmation from Lamprell
Holdings Ltd., which holds 33.12% of Lamprell's existing issued
share capital, of its intention to vote in favor of the transaction
at the general meeting on June 26.
-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
May 31, 2017 02:29 ET (06:29 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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