Subsea 7 Looks to Snap Up Seaway Heavy Lifting
Subsea 7 said that one of its wholly owned subsidiaries has made an offer to acquire the 50 percent shareholding in Seaway Heavy Lifting currently owned by K&S Baltic Offshore (Cyprus).
The terms of the offer are binding on Subsea 7 until July 1, 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.
Jean Cahuzac, CEO, said: “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. 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 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% interest. If the offer to acquire the remaining 50% is accepted, Seaway Heavy Lifting would become a wholly owned subsidiary of Subsea 7.
Subsea 7 is offering an initial consideration of USD 279 million on completion and deferred consideration of up to USD 40 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.