Ezra said to near sale of 50% subsea business stake to Chiyoda

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SINGAPORE (Aug 27): Ezra Holdings, the offshore contractor and provider of integrated offshore solutions, is nearing a deal to sell about a 50% stake in its subsea business to Japan’s Chiyoda Corp., said people with knowledge of the matter.

The transaction could value the subsea business at more than US$1 billion ($1.4 billion) including debt, the people said, asking not to be identified as the information is private.

Ezra requested trading halt this morning, pending release of an announcement.

Year to date, Ezra shares have fallen 64%, giving the company a market a value of US$239 million.

A representative for Ezra didn’t answer phone calls and didn’t immediately respond to an e-mail and mobile-phone text message seeking comment.

A spokesman for Chiyoda didn’t answer a call to his office seeking comment, and a request sent to the company’s public-relations team through Chiyoda’s website wasn’t immediately replied to.

Last year, Ezra sold its offshore marine supporting operations to Oslo-listed affiliate EOC Ltd. For US$520 million last year to focus on the subsea business.

At that time, CEO Lionel Lee said Ezra was still looking to list its subsea division.