Sembcorp Marine Purchases Norwegian Ship Design Firm
Sembcorp Marine Integrated Yard, a subsidiary of Singapore-based marine and offshore engineering group Sembcorp Marine, has entered into a sale and purchase agreement to acquire a 100% equity stake in Norwegian ship design and engineering company LMG Marin AS for USD 20 million.
The consideration for the acquisition, to be fully paid in cash by internally generated funds, was arrived at on a willing-buyer willing-seller basis, after taking into account the estimated net tangible asset value of USD 3.8 million as at July 31, 2016, and intellectual property and patents of LMG.
Following the acquisition, LMG becomes an indirect wholly-owned subsidiary of Sembcorp Marine.
“Through the strategic acquisition of LMG, Sembcorp Marine further strengthens its intellectual property and knowledge to execute leading-edge design and engineering solutions for the global offshore and marine sectors,” said Sembcorp Marine President and CEO Wong Weng Sun.
The acquisition is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of the company for the year ending December 31, 2016.
LMG Marin’s design and engineering portfolio includes floating structures, platforms and a wide variety of ship types, such as drillships, floating production, storage and offloading vessels (FPSO), floating storage and offloading vessels (FSO), offshore support vessels (OSV), LNG carriers, LNG-powered ships, car ferries, and cruise ships.