GC Rieber Shipping Sells Its Stake in Reef Subsea

GC Rieber Shipping ASA has entered into an agreement to sell its stake in Reef Subsea AS to HV V Invest Golf AS and HV V Invest Golf II AS, two investment companies of the private equity fund HitecVision V, LP.

The agreed purchase price is NOK 175 million, which will be settled by a combination of cash and seller’s credit.

Adjusted for share of loss from Reef Subsea in the fourth quarter 2013, the sale will have a negative effect of NOK 83 million for GC Rieber Shipping in the fourth quarter. Negative effect on earnings from the investment in Reef Subsea amounts to NOK 156 million for 2013.

The sale of the stake in Reef Subsea is a consequence of GC Rieber Shipping’s strategic decision to focus on its core business and expertise within ownership, development and management of advanced vessels within the offshore market.

“GC Rieber Shipping aims to focus on the three areas defined as our core business. We see exciting opportunities in ice/ support, subsea and also within seismic. We have to exploit our strong financial position, by selectively pursue growth opportunities we believe will provide the best return”, comments CEO Irene Waage Basili.

Closing of the transaction is expected to take place as soon as the Norwegian Competition Authority has approved the transaction, or the deadline for intervention has expired. This is expected to take place in mid March 2014.

Press Release, January 28, 2014; Image: Reef Subsea