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Otto Marine in $20m Go Marine buyout plan

Otto Marine in $20m Go Marine buyout plan

Singapore: Offshore marine firm Otto Marine has through its subsidiary inked an agreement to buyout Go Marine for a total consideration of about A$20m ($20m).

Otto Ventures, subsidiary of Singapore-based Otto Marine, will acquire Australia-based Go Marine, an offshore and inshore marine services supplier, through a convertible loan agreement and an option agreement.

The convertible loan agreement will allow Otto Ventures to provide Go Marine with a loan of A$15m in two tranches within one year to take 49% stake in it. The option agreement will allow Otto Ventures to exercise within one year an irrevocable option to acquire the remaining 51% of Go Marine at a price of A$5m.

"Investing in Go Marine fulfills an important linkage in our objective of building a strong chartering fleet as part of our business," said Lee Kok Wah, president and group ceo of Singapore-listed Otto Marine. "It also provides us with a strategic platform for providing marine services to the burgeoning Australian oil and gas market," Lee said. [02/02/11]