STOCKS NEWS SINGAPORE-Mermaid up on Seadrill deal, contract win

Sun Oct 28, 2012 10:30pm EDT

Shares of Mermaid Maritime Pcl rose as much as 12 percent after the offshore services provider said Seadrill Ltd plans to acquire its associate and its joint venture won a $530 million five-year contract.

Mermaid shares leapt as high as S$0.38, the strongest level since August 2011. Some 3.6 million shares changed hands, 2.4 times the average full-day volume over the past 30 days.

Seadrill bought 12.2 million shares in Mermaid's associate, Asia Offshore Drilling Ltd (AOD), at $5.00 each on Friday. Seadrill, which now has 64.23 percent in AOD, will then make a cash offer for the remaining shares.

Last week, Mermaid said its joint venture had secured a five-year contract, with an option for another two years, for offshore inspection, repair and maintenance services.

Mermaid's potential revenue is between 60 and 70 percent of the contract value, the company said, without disclosing the name of the client.

1016 (0216 GMT)