The Straits Times
www.straitstimes.com
Published on Apr 24, 2013
Companies
STX OSV renamed Vard and will stay on SGX
Shareholders vote for change; new name on SGX board from Monday
By Chia Yan Min
THE newly named shipbuilder Vard - previously called STX OSV - will stay listed on the Singapore Exchange (SGX), said chief executive Roy Reite yesterday.
Mr Reite noted that while the Norwegian-based firm secures a large proportion of its orders from Europe, it has also won a number in Asia.
"It is natural for us to stay in Singapore because of the knowledge of the oil and gas industry... Being listed in Singapore also has its advantages compared with other places where investors are less familiar with the offshore industry," he added.
Mr Reite said the company, which has yards in Romania, Vietnam and Brazil, has no specific plans for a secondary listing on another bourse.
The name change followed corporate moves that began last December when STX Europe, part of South Korea's STX Group, sold its 50.75 per cent stake in Singapore-listed STX OSV to Italian state-owned ship-builder Fincantieri for $730.6 million.
The Italian company offered remaining investors $1.22 a share for their STX OSV holdings, but accumulated only a further 4.88per cent by the time the offer period closed on March 13.
Yesterday, shareholders voted to change the company's name to Vard.
The name comes from the Norwegian word "varde", which are small stone towers in Norwegian waters that ships relied on as ancient navigational markers.
The counter's name on the SGX board will change on Monday.
Mr Fabrizio Palermo, non-executive director of Vard and chief financial officer of Fincantieri, said Vard is an "interesting investment" for the Italian shipbuilder.
"The investment has allowed us to further diversify into higher value-added segments, and complements our current portfolio... This diversification will help us in sustaining the company through different economic cycles," he said.
chiaym@sph.com.sg