Singapore-based Swiber Holdings, which is under judicial management since October 2016, on Thursday inked a term sheet for proposed deal to pave entry into power sector.
The oil and gas firm announced the proposed acquisition of Interlink Power & Energy Holdings, an Australia-based private company that provides bridging power using mobile dual fuel turbines.
Interlink Power & Energy, which has presence in Australia, UAE, Pakistan and Indonesia, has clients such as General Electric, Rio Tinto, APR Energy and Repsol.
The proposed transaction is subject to conditions including the completion of restructuring of all debts and liabilities of Swiber, securing new equity investors to inject up to US$200 million into Swiber, and approvals from creditors, shareholders and other authorities, the company said in a regulatory filing.
The proposed acquisition of Interlink, when completed, will provide Swiber with a supporting team of engineers and other expertise needed to execute power projects and broaden both companies access to long-term power purchase agreements, Swiber said.
"As part of the restructuring process, the Judicial Managers and Swiber managementhave been working on a business model and investment framework that we believe will bring strategic value to Swiber's stakeholders and provide a sustainable business going forward," said Bob Yap, Head of Advisory at KPMG in Singapore.
Swiber Holdings embarked on a court-led restructuring of its debt last year as the energy support sector struggles from three years of weak oil prices.
The liquidation filing came after a nearly 90 percent plunge in share prices from mid-2014 levels that reduced the oil and gas firm's market value to just S$50 million. The trading in Swiber's stock has been suspended since then.
Discussions with several potential investors are ongoing and the Judicial Managers hope to provide creditors with a statement of proposals on the restructuring plan by first quarter of 2018, the company said.