You are here

Subsea 7 announces offer for Seaway Heavy Lifting

17th January 2017

Subsea 7 has announced that one of its wholly owned subsidiaries has made an offer to acquire the 50 per cent shareholding in Seaway Heavy Lifting currently owned by K&S Baltic Offshore.

The terms of the offer are binding on Subsea 7 until 1st July 2017. During this period the works council representing the employees of Seaway Heavy Lifting in the Netherlands will be consulted in compliance with Dutch law.

"Subsea 7's strong market position in offshore energy services is complemented by Seaway Heavy Lifting's expertise in three areas  of offshore activity: renewables, heavy lifting operations and decommissioning of oil and gas assets,” Jean Cahuzac, CEO, said. “We believe that this acquisition will allow us to strengthen Subsea 7's position in businesses where we expect increased activity and opportunities for long term growth.

Seaway Heavy Lifting is a specialist offshore contractor and operates two world-class heavy lift vessels. It employs approximately 550 employees and is headquartered in the Netherlands.

Seaway Heavy Lifting is a joint venture in which Subsea 7 currently holds a 50 per cent interest. If the offer to acquire the remaining 50 per cent is accepted, Seaway Heavy Lifting would become a wholly owned subsidiary of Subsea 7.

Subsea 7 is offering an initial consideration of USD279 million on completion and deferred consideration of up to USD40 million to be paid by the end of the first quarter 2021 on condition that certain performance targets are met. The considerations will be funded from Subsea 7's existing cash resources.

As at 31 December 2015 Seaway Heavy Lifting had net assets of USD413 million, including net debt of USD4 million. 

Related topics: