BAKERTECHNOLOGYLIMITED
ANNUALREPORT2013
113
Notes to the
Financial Statements
for the financial year ended 31December 2013
14. Investment inANassociate (cont’d)
Disposal of an associate
A.
Disposal of investment inDiscoveryOffshoreS.A.
Discovery Offshore S.A. ("DO") is a Luxembourg-based public limited liability company incorporated on 12 January 2011 for
the purpose of owning new ultra high specification jackup drilling rigs. DO's main assets are two Keppel FELS Super A class
high specification harsh environment jackup rigs.
In February 2013, theCompany purchased additional 87,150 shares inDO from the openmarket for a total consideration of
$241,879. As a result, theCompany's interest inDO increased from20.16% to 20.29%.
In June 2013, DO's other major shareholder, Hercules Offshore, Inc. ("Hercules") announced that it had acquired additional
shares inDO and triggered anobligation tomake amandatory offer for all the remainingoutstanding shares inDO at anoffer
price of NOK 15.00.
Having considered the change in DO's shareholding structure following Hercules' share purchase, the potential for Hercules
to acquire further shares inDO in view of themandatory offer and theGroup's capital gains from the disposal, theCompany
disposedof its entire stake inDO in June 2013.
The gainon disposal for theGroup is computed as follows:
Group
2013
$
Proceeds from disposal
40,997,858
Less:
Carrying value of the investment
(31,766,502)
Expenses on disposal
(473,916)
Gainon disposal
8,757,440
The share of losses from DO of $495,000 (2012: $11,000) has been recognised in the consolidated statement of profit
and loss.
