The basis for this change of heart seems to be possible cooperation with a rig builder and an offshore service provider which Titan sees potential to develop.
Titan said in the announcement that it has recently been in discussions with an Asian-based leading offshore oil rig manufacturer and a service provider respectively on cooperation arrangements in the oil rig manufacturing business and the utilisation and adaptation of the production facilities at Titan Quanzhou Shipyard for such purpose.
"The company considers this to be an attractive opportunity, which would provide it with a sound basis to re-build and develop its business and to pursue its debt restructuring plans and its application for resumption of trading in its Shares," Titan concluded.
The deal is contingent on Titan fulfilling a number of conditions before 31 December 2013 and meanwhile GZE still retains the right to to continue with the original agreement. As such Titan warned shareholders that "There is no assurance that the Sale and Purchase Agreement will be completed or the Possible Transaction will materialise or be consummated."
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