Date Published: 27 July 2023
The team involved in the transaction: Ken Chia, Lai Zheng Yong and Serena Devi (Paralegal)
The Shares Subscription Agreement (“SSA”) was signed between EDrill and Pioneer on 9th June 2023 in the offices of EDrill to mark the important occasion. The equity investment from Pioneer pursuant to the SSA allows EDrill, together with increased support from EDrill’s banking group and cash from its balance sheet, to raised the funds required to purchase three tender rigs.
Mr. Alf Thorkildsen (the Chairman of EDrill) said: “We are extremely pleased to welcome Pioneer as a new key shareholder of Energy Drilling. This partnership represents a significant milestone for us and will undoubtedly contribute to our continued growth and success. Their commitment to our mission and vision aligns closely with our own, making this a truly unique and synergistic partnership.“
Mr Marcus Chew (the CEO of EDrill) commented: “This capital injection by Pioneer allows us to double the size of fleet upon completion and will further strengthen our position in the market and open new possibilities for innovation and expansion. I believe this collaboration will create exciting opportunities to explore and grow for everyone in our organisation. As we move forward, we will remain dedicated to fostering a culture of teamwork, creativity and operational excellence. Our enlarged fleet will offer greater synergies of scale and allow us to provide unapparelled value to our customers.”
Mr Marcus Chew added: “I would like to convey my personal thanks to the CNP team for the excellent work done!”
Every business involves an amalgam of various stakeholders, such as investors, shareholders and directors. Ideally, each of these stakeholders should have a common vision of what is best for the company. However, this is rarely the case when individual interests are factored into the equation.
Stakeholder conflicts (regarding issues such as breaches of fiduciary duties, derivative actions, shareholder oppression, management deadlocks, management compensation, dividend payments and buy-outs) can be a thorny issue and can leave a company crippled if not addressed promptly.
Given the diversity of interests at play, we appreciate that a multi-faceted approach is usually the most cost-efficient method of resolving stakeholder conflicts. Therefore, we provide clients with ready access to an integrated team of lawyers (combining the experience of our corporate, dispute resolution and employment law practices where applicable) who will effectively engage the relevant stakeholders in discussions on how best to resolve their differences amicably.
More often than not, clients are able to avoid costly protracted court proceedings and resolve stakeholder conflicts with discretion and expediency.
Each M&A deal entails the confluence of multiple legal disciplines. That is why we take great care when assembling a team for each deal, ensuring that there is an optimal mix of specialisation in the clients’ identified areas of concern, such as tax, employment and intellectual property, and necessary industry-specific experience.
We provide support to our clients at every stage of the deal. We will be there at the beginning of the process, helping to facilitate the negotiations between the parties and advising on the structure of the transaction. Once the parties have reached a consensus, we meticulously prepare the necessary documentation. Recognising that M&A deals are often the first page of a new chapter for the parties involved, we also provide post-transaction support to ensure a smooth transition such as the preparation of shareholder agreements, employment agreements, and other relevant commercial documentation.
