Ezra proposed to divest a 10% stake in 50% owned JV EMAS Chiyoda Subsea (ECS) to new strategic partner Nippon Yusen Kabushiki Kaisha (NYK) for US$14.4m (1.2x P/B).
Concurrently, JV partner Chiyoda will also sell 15% of its stake in the subsea services business to NYK.
If completed, Ezra, Chiyoda and NYK will hold 40%, 35% and 25%, respectively, in the JVCo.
While the addition of Chiyoda in Mar '16 added depth and breadth to ECS' operational offerings, NYK's participation is expected to augment the expertise in global expansion and fortify the group's presence in the Japanese and international markets, through NYK's 130-year experience in ship management and operation.
Long stop date for the deal is on 30 Sep '16.
At the current price, Ezra is trading at a heavily discounted 0.18x P/B.
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