Transaction in Own Shares • Feb 20, 2025
Transaction in Own Shares
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Paratus Initiates Share Buyback
Hamilton, Bermuda, February 20, 2025 - Paratus Energy Services Ltd. (ticker
"PLSV") ("Paratus" or the "Company") announces the launch of its previously
announced share buyback program, under which the Company intends to repurchase
shares for an amount of approximately $20 million by way of a reverse
bookbuilding ("the Buyback"). The Buyback is expected to commence on 28 February
2025 and to end no later than 4 March 2025, marking the first step in deploying
the previously announced share repurchase authorisation of up to $100 million.
Background for Buyback
The Company announced on 5 February 2025 that its wholly owned subsidiary,
Fontis Holdings Ltd. ("Fontis"), had received payments of $209 million in
overdue invoices from its customer in Mexico, materially strengthening the cash
position of the Company. Current cash stands at $277 million[1], which equals
approximately 42% of the Company's current market capitalization[2]. In
addition, as per end of January 2025, Fontis maintains a receivable balance with
the customer, of approximately $155 million[1]. Combined with the current cash
position, this corresponds to approximately two-thirds of the Company's market
capitalization. The Company remains focused on maintaining a strong balance
sheet to support its operational priorities, while at the same time having a
policy to provide shareholders with stable, long-term and sustainable
distributions, subject to allowance under its debt agreements.
Buyback process
The Buyback is expected to commence on the day of the Q4 2024 earnings release,
scheduled for 28 February 2025, and close no later than 4 March 2025. Paratus
has engaged ABG Sundal Collier ASA to assist in connection with the Buyback.
Shareholders who wish to participate will be invited to tender shares at a price
level defined by the respective selling shareholder by contacting ABG Sundal
Collier ASA. Further details and important information will be available in a
separate announcement to be released upon commencement of the Buyback.
Any additional future share repurchases, within the previously announced mandate
to acquire shares for an amount of up to $100 million, will be announced
separately, and any buyback may be suspended or discontinued at any time.
The two largest shareholders of Paratus, Hemen Investments Ltd. and Lodbrok
Capital LLP on behalf of funds and accounts managed or advised by it, have
informed the Company that they do not intend to participate in the Buyback.
For further information, please contact:
Robert Jensen, CEO
+47 958 26 729
Baton Haxhimehmedi, CFO
+47 406 39 083
Notes: (1) Based on management reporting; cash includes 50% of Seagems cash and
restricted cash; Preliminary balance sheet figures are unaudited estimates and
subject to change. (2) As of 19 February 2025.
About Paratus
Paratus Energy Services Ltd. (ticker: PLSV) is an investment holding company of
a group of leading energy services companies. The Paratus Group is primarily
comprised of its ownership of Fontis Energy and a 50/50 JV interest in Seagems
(formerly Seabras). Fontis Energy is an offshore drilling company with a fleet
of five high-specification jack-up rigs working under contracts in Mexico.
Seagems is a leading subsea services company, with a fleet of six multi-purpose
pipe-laying support vessels under contracts in Brazil. In addition, Paratus is
the largest shareholder in Archer Ltd, a global oil services company, listed on
the Euronext Os
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