Mermaid Maritime strengthens Middle Eastern foothold by raising stake in Subtech Saudi Arabia

Its shareholding interest jumped from 70% to 95%.

Mainboard-listed Mermaid Maritime yesterday revealed that it is raising its stake in Subtech Saudi Arabia in order to strengthen its foothold in the Middle Eastern country.

The Group increased its stake in Subtech Saudi Arabia to 95% through acquisition of previous co-shareholder General Technology & Systems Co. Ltd. with the remaining 5% held by local interests represented by Integrated Trading Services Establishment.

The aggregate value of the consideration for the 25% shares was USD 250,000. This new shareholding structure of Subtech Saudi Arabia is currently in the registration process and is expected to be completed by the end of October 2014. 

As part of the Group’s unified branding initiative, Subtech Saudi Arabia shall also be renamed as Mermaid Subsea Services (Saudi Arabia) Ltd.

The Group’s move to increase its business presence in Saudi Arabia comes soon after the world’s biggest oil producer, State-owned Saudi Aramco, announced its plans to increase investment over the next decade to keep oil production capacity steady, while doubling gas production.