SERVICE SECTOR ACQUISITION / Otatco + Premier Sea & Land
OTATCO CLOSES ACQUISITION OF INTERNATIONAL OIL SERVICES TRADING COMPANIES
CALGARY, May 21 /CNW/ - OTATCO Inc. (''OTATCO'') is pleased to announce
that its Offer to Purchase all of the issued and outstanding shares of Premier
Sea & Land Pte. Inc. of Singapore, Premier Sea and Land Limited of Hong Kong
has closed today. The effective date of the acquisitions is January 1, 1998.
Total consideration paid for the two companies is six (6) million Class A
Common Shares of OTATCO, $US 10,000 cash, plus a percentage of profits from
international business activities for the next five years. Premier's
management will remain with OTATCO.
Based in Singapore and Hong Kong, Premier Sea & Land Pte. Inc. and
Premier Sea and Land Limited have established operations in southeast Asia,
primarily in the areas of oilfield equipment sales, servicing, rentals,
trading and procurement for customers in Malaysia, Australia, Thailand, China,
Vietnam, Myanmar and Indonesia. Assets and infrastructure include drilling
and production tools, rental equipment, warehousing, and equipment servicing
facilities. The Premier companies had gross sales of approximately $2.9
million and cash flow in excess of $600,000 for the 3 month period ending
March 31, 1998.
OTATCO is an oilfield production services and technology company listed
on the Alberta Stock Exchange (symbol: OTI). The Alberta Stock Exchange has
neither approved nor disapproved of the information contained herein.
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For further information: David L. Yager, President, Robert Dunstan,
Chief Financial Officer, (403) 266-0908, Fax: (403) 266-1639 |
