Dominion Bridge Corporation - Four Amethyst Platforms to be Built by Davie
Industries Inc.
LEVIS, QUEBEC--(NASDAQ, DMO.U, DBCO) If the necessary financing is
put in place within the allowable delay, four - not two - Amethyst
platforms may be built at the shipbuilding yard of Davie
Industries Inc. in Levis. The total value of the four Amethyst
platforms is estimated at US$750 million or C$1.1 billion.
The management at Davie Industries Inc. confirmed the possible
order today following recent discussions with Mr. Paul Bragg,
President of Pride International, who spoke on behalf of
Petrodrill Offshore Inc. which has ordered two Amethyst platforms
from Davie Industries. The discussions confirm the opinion
expressed by John O'Leary, Vice President of Pride International,
during a television interview with Radio-Canada (CBC - French)
broadcast on Monday, September 14th.
Davie Industries management insists that the financing necessary
to realize the project requires no government subsidy. For each
platform, the unit cost of which is US$187.5 million, Petrodrill
is prepared to pay US$37.5 million from internal sources, with the
remaining US$150 million to come from external sources.
Petrodrill would obtain a firm and irrevocable agreement for
US$300 million to ensure the complete reimbursement of interim
financing that will be underwritten by a syndicate of financial
institutions and guaranteed by Investissement Quebec. In
addition, a performance bonus of US$80 million is offered by the
consortium led by American Eco to Davie Industries.
The management of Davie Industries states, "This is a standard
financing structure for such a project and is a practice followed
in all industrialized countries."
Founded in 1825, Davie Industries Inc. (formerly MIL Davie) built
its reputation in ship construction and ship repair. For more
than 20 years, Davie Industries has acquired an expertise in the
production of drilling platforms for the oil and gas industry.
fin-info.com
American Eco Enters Negotiations to Acquire Davie
Industries
HOUSTON--(BUSINESS WIRE)--Sept. 10, 1998--American Eco Corporation (American Eco)
(NASDAQ:ECGOF - news) announced today that it is negotiating to acquire Davie Industries
(Davie) from Davie's parent company, Dominion Bridge Corporation (Dominion Bridge) (NASDAQ:DBCQE - news; VSE:DMO.U - news).
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