Shareholders of offshore and marine service company Gaylin Holdings have approved the acquisition of AMOS International, enabling the combined entity to realize synergistic value as their markets recover. 

Stock price 

5 c

52-week range

5 - 15 c

PE (ttm)

--

Market cap

S$90 m

Shares outstanding

1.8 b

Dividend 
yield
(ttm)

--

Source: Yahoo!

- The acquisition will create revenue growth potential through cross-selling opportunities, and the expansion of client network and geographical reach.
 
- It will bring AMOS’ Alcona brand of products, including marine consumables, crew-gear and personal protective equipment to Gaylin’s extensive product range.
 
- Economies of scale will lead to cost saving on procurement, operations and financing.
 
- Integration plan in place to realize the synergistic value



31 Mar year-end (S$’m)

FY18

FY17

Revenue

67.6

79.7

Gross profit

(24.3)

11.0

Net Profit

(51.6)

(11.4)

Gaylin Holdings (藝林控股有限公司), a specialist provider of products, services and solutions to the global offshore oil & gas and maritime industries, has gone through a debt restructuring organised by private equity firm ShawKwei & Partners, which saw the fund manager inject US$52 million for a 76% stake in the company. 

Gaylin said that following the acquisition of AMOS, the latter will become a wholly-owned subsidiary.


AMOS provides supplies, services and logistics solutions to the marine transportation sector with its headquarters in Singapore.

AMOS has an extensive clientele including the world’s leading fleet owners/operators and ship managers. With operations in Singapore, Shanghai and Hong Kong, AMOS provides customers with a single point of contact to access an international network of over 2,500 validated partners and suppliers.

perrykennedy"This is an opportune time to combine Gaylin and AMOS, creating a pathway for us to bring AMOS’ broad range of products and services, including the new and promising Alcona brand to Gaylin’s global offshore client network.

"The economies of scale will also reduce procurement, operational and financing costs, improving profitability.”

-- Perry Kennedy,
CEO, Gaylin Holdings
(He joined in April 2018)

Mr. Perry Kennedy, CEO of Gaylin, said, “As oil prices begin to stabilize, the offshore oil & gas sector looks to be following signs of recovery recently seen in the marine transportation sector. There is gradual increase in demand for our products and services." 

Gaylin said the acquisition of AMOS will also enhance the creditworthiness of the Group.

With the stronger balance sheet post-acquisition, Gaylin will look at further improving its capital structure and re-financing some of its debt at more favourable terms.

The total consideration of the acquisition is expected to be S$48,614,987, to be satisfied by the issue of 863,410,176 new ordinary shares at S$0.06 each.

(The total consideration and the number of shares to be issued are subject to certain adjustment).

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