STX Europe cuts STX OSV stake to 50.7%

STX Europe Holding AS, a wholly owned subsidiary of STX Europe AS, has agreed to sell part of its equity interests in STX OSV Holdings Limited (STX OSV) to investment funds affiliated with OZ Management LP (Och-Ziff).

Founded in 1994 by Daniel S. Och, Och-Ziff Capital Management Group is one of the largest alternative asset managers in the world, with approximately $29.3 billion in assets under management as of July 1, 2011.

The placement of 215,590,000 ordinary shares by STX Europe will be at a price of S$1.33 per share. This amounts to approximately 18.27% of the total issued share capital of STX OSV. Following the sale, STX Europe will hold 598,851,000 shares in STX OSV equal to a majority shareholding of 50.75%.

STX Europe underscored that the placement was made with the objective of improving the trading liquidity of STX OSV. As a result of placement, Och-Ziff’s shareholding in STX OSV will increase to 20.0%.

STX Europe remains committed to STX OSV as a substantial shareholder in the specialist vessel shipbuilder, owning 50.75% of STX OSV post the placement.

STX Europe will use the proceeds from the share sale to reduce its corporate debt, loan to shareholders and for general corporate purposes. It says it has resolved to prepay its NOK 250 million senior unsecured bonds issue due 2012 and will fund the repayment of the bonds from the STX Europe group’s own resources, which will include the proceeds from the sale of 215,590,000 shares in STX OSV Holdings Limited). The company will also use part of the proceeds from the sales of shares as loan to shareholders, and to repay an aggregate NOK 650 million, plus accrued interest, of shareholder loans provided by STX Business Group to STX Europe AS in 2008 and 2009.

July 8, 2011