Oil vessel charterer Ezion Holdings requested a mandatory suspension of its shares on Monday, effective immediately. That followed a voluntary suspension on Friday citing advanced discussions with a potential strategic investor which has begun some due diligence.
“Given the current dynamic situation that the company is in, a trading suspension would avoid any irregular movement in share price and prevent any irregular trading activities that may result from the leakage of any information which the company has no control over,” Ezion had said in a filing to SGX on Friday.
In a separate filing on Friday, Chairman Wang Kai Yuen and CEO Chew Thaim Keng issued a letter to shareholders saying that the potential investor would also need to reach an agreement with secured lenders.
In addition, Wang and Chew said that market conditions for the company have remained “very challenging” and that the industry also faces “systemic problems.”
They noted some of the shipyards, equipment suppliers and services providers Ezion works with are facing similar issues, and it has affected Ezion’s deployment plans “significantly.”
Ezion reported on Friday its fourth quarter loss after tax widened to US$390.83 million (S$529.65 million) from a loss of US$331.13 million in the year-earlier quarter as utilization and charter rates fell and amid an industry credit crunch.