03/03/2010 - 12:00

Miclyn eyes WA after $365m IPO

03/03/2010 - 12:00

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The Neil Hamilton-chaired company Miclyn Express Offshore will take a controlling stake in Fremantle-based Samson Maritime as a platform to break into WA's booming North West oil and gas sector.

Miclyn eyes WA after $365m IPO

The Neil Hamilton-chaired company Miclyn Express Offshore will take a controlling stake in Fremantle-based Samson Maritime as a platform to break into WA's booming North West oil and gas sector.

The specialist Singapore-based offshore services group today announced plans to list on the Australian Securities Exchange via an initial public offer to raise between $297.6 million and $365 million.

A key objective of the float is to buy a 50 per cent interest in the privately owned Samson Maritime for $23 million, $7.5 million of which will be used to retire Samson's existing debt facilities.

Samson mainly services the dredging and marine civil engineering operations of large oil and gas customers on the north‑west shelf of Western Australia, and operates a fleet of three offshore service vessels, two utility vessels and six coastal service vessels.

The acquisition will complement Miclyn's existing fleet of 22 OSVs, 61 utility vessels and 21 barges. Miclyn also owns a shipyard at Batam in Indonesia.

The group is forecasting a 19.4 per cent increase in pre-tax earnings to $US76.9 million in the 2010 financial year, with almost 80 per cent of its 2010 revenue already locked in under long term contracts. The company is forecasting a 25 per cent increase in revenue to $124.7 million in FY2010.

Chairman Neil Hamilton said the group had a "strong track record of growing the business through organic, joint venture and acquisitive mean" and that it expected that growth to continue.

"As demand for oil and gas rises and onshore oil reserves deplete, an increasing proportion of new exploration and production activity is being conducted offshore," he said.

"Miclyn Express is well positioned to meet expected market growth through further investment in vessel renewal and fleet expansion."

In particular, Miclyn believed the acquisition of Samson Maritime would provide a ready platform to access market opportunities available in the rapidly expanding offshore oil and gas market in Western Australia.

It also plans to expand its presence in Indonesia, Malaysia, Qatar and Thailand.

Miclyn is offering about 161 million shares at a price of between $1.85 and $2.30 per share, representing up to 59 per cent of the company's total capital base. It expects to start trading on the ASX on April 6.

Miclyn's float and investment in Samson comes as WA's leading offshore services provider, South-Perth-based GO Marine, negotiates a $150 million equity injection to become Australia's largest offshore services fleet operator.

As reported by WA Business News in December, the $150 million deal with an unnamed international group is slated for completion in the next few weeks and will enable GO to invest $300 million in new vessels and double its fleet.

 

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