EZION HOLDINGS

EZION HOLDINGS | UNDER REVIEW

TARGET PRICE: UNDER REVIEW

APRIL 4 CLOSE: SUSPENDED

DBS Group Research, April 4

As earlier guided, Ezion posted a loss of US$1.0 billion (S$1.31b) for FY17.

The refinancing proposal, which has been approved by its lenders, security holders and shareholders, gives Ezion a 6-year runway as going-concern and additional credit line of US$118 million for working capital, and allows Ezion to seek strategic investors to strengthen its balance sheet and expand its liftboat fleet.

Ezion remains in talks with potential strategic shareholders that are synergistic with its existing liftboat business and financial investors to strengthen its balance sheet and position it to ride the sector's recovery.

Having strategic shareholders is a critical weapon required to win the other half of the battle i.e. earnings recovery.

Financial backing will be required to grow Ezion's operating fleet to tap demand for liftboats and Mobile Offshore Production Unit (MOPU).

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