Mermaid Looks for Mr Right

Singapore listed Mermaid Maritime is planning a renounceable fully-underwritten rights issue of 243,542,403 new shares. The drilling and subsea engineering services provider plans to raise gross proceeds of approximately SGD 156 million (USD 110 million) at an issue price of SGD 0.64 per Rights Shares. The offering price represents a 29.7% discount to the closing price on 17 September 2009 and will be offered on the basis of 9 Rights Shares for every 20 existing shares.

As a demonstration of commitment and confidence in Mermaid, majority shareholder Thoresen Thai Agencies Public Company Limited (“TTA”) has provided an irrevocable undertaking to subscribe for all its entitlement and will also apply for excess rights shares to ensure it holds at least 51% of the total enlarged share capital of Mermaid in order to comply with Thai law requirements on majority Thai ownership.

The proceeds will be use to provide Mermaid with greater financial capacity to pursue both tactical and strategic growth opportunities. Merrill Lynch (Singapore) is the appointed manager and underwriter for the Rights Issue.

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