EMGS: Establishes new business platform within Subsea Construction through vessel acquisition – no equity required

Core Viewpoint - EMGS is strategically diversifying into the offshore subsea construction market by acquiring the OSCV Siem Day vessel, enhancing its resilience and long-term value potential [1][2]. Transaction Structure and Financing - EMGS will enter a five-year bareboat charter agreement at a rate of USD 42,000 per day, increasing to USD 45,000 per day after December 31, 2025, with a total acquisition price of USD 108.90 million [3]. - The initial payment of USD 10.89 million will be financed through an increase in the existing bond loan, with no new equity issuance required [4]. Strategic and Financial Upside for Shareholders - The existing charter agreement is expected to cover charter payments and daily operating expenses, with spot charter rates estimated between USD 100,000 and USD 140,000 per day post-2025 [5]. - EMGS aims to grow in the subsea sector by acquiring additional vessels, providing shareholders with exposure to potential value appreciation [6]. Corporate Governance and Fairness Opinion - The transaction involves a related party, with a fairness opinion confirming its financial fairness to all EMGS shareholders [7]. - The Board of Directors has prepared a statement on the transaction as required by law [8]. Operational Setup - EMGS plans to engage Aurora Offshore Management AS for technical and commercial ship management, budgeting daily operating costs at approximately USD 22,000 [11]. Addressing Convertible Bond Maturity and Next Steps - EMGS intends to propose a five-year extension of the maturity date for outstanding convertible bonds, with support from major shareholders [12]. - Changes to bond terms will provide flexibility for the diversified strategy and adjust the conversion price for FX movements [13].