Ezra agrees to deferred payment from EOC as part of consolidation plan

Up to $158.58m may be paid over a period of 3 years.

Mainboard-listed Ezra Holdings revealed its consolidation plans for its subsidiary EOC early in August. The move aims to consolidate EOC’s offshore support services business to position EOC Group as an integrated offshore solution provider.

Today, Ezra revealed that it is agreeing to receive up to $158.58m (US$125m) of the cash consideration of $190.3 (US$150m) on a deferred basis over a period of 3 years.

The interest payable will be at the rate of 3.5% per annum on the outstanding principal amount of the deferred consideration in the second and third years of the payment period.

“Taking into account, inter alia, the rationale for the Proposed Consolidation, the payment terms of the Deferred Consideration and that the completion of the Proposed Consolidation is in the best interests of the Company, the Board of Directors has agreed to the Deferred Consideration to facilitate completion of the Proposed Consolidation,” stated Ezra in a release to the SGX.