Mermaid H1 profit drops, announces acquisition

Company News

Mermaid Marine Australia Limited (ASX:MRM) has reported a drop in its half year profit while also announcing it has agreed to buy the subsidiaries of a Singapore-listed company.  
 
The marine logistics and supply base services provider’s interim net profit fell 25.5 per cent to $24 million in the last six months of 2013. 
 
Managing Director Jeffrey Weber says while the trading performance was lower than expected the period had some significant positives including a number of major new contracts. 
 
Separately, Mermaid Marine has inked a deal to buy the subsidiaries of Singapore-listed Jaya Holdings for $550 million in cash. 
 
Jaya Holdings is an offshore oil and gas marine services provider with a fleet of 27 vessels and two shipyards in Singapore and Indonesia. 
 
Mermaid Marine has entered into a trading halt to prepare for a $317 million equity raising to partially fund the acquisition.