Viking Offshore & Marine

Viking Offshore & Marine: Venturing into the offshore rig-building and rig charter market, by partnering with rig building veteran Chan Kwan Bian and prominent investor Tan Boy Tee. Both men were co-founders of Labroy Marine, previously an SGX-listed rig builder which was privatized by Dubai Drydocks for $2.4b in Jan ’08. Viking has commissioned a CJ46-X100-D GustoMSC drilling jack-up rig to be built at China Merchant Heavy Industries at a cost of ~US$180m. Chan will provide the overall project management of the rig construction, while Viking may provide the complementary equipment and engineering services to the rig construction. After the completion, the vessel may be resold or chartered to prospective customers. Separately, Viking will raise up to $6.4m in fresh equity, by placing to Tan, 40m new shares at $0.08 apiece, with an option of the same quantity and amount to be exercise over the next 90 days. With the share subscription, Tan will become a substantial shareholder of Viking. Upon exercise of the option, Tan’s shareholding will represent 10.1% of the enlarged share base.