Seabased $10m takeover sinks
Norwegians had been seeking to take majority control of wave outfit
Swedish wave developer Seabased has cancelled a planned takeover and $10m investment by Norway's Seabased Holding.
The company claimed Seabased Holding’s “non-performance on promised investments” into Seabased AB had put its finances “under considerable strain”.
The Norwegian outfit was to initially invest $10m in Seabased during 2016, with $6m designated for the first half of the year, in return for 50.25% of Leijon Engineering’s shares in Seabased.
Lengthy delays and changes to the payment installment plan to Leijon Engineering for the shareholding further contributed to the decision to cancel the deal, it said.
Seabased is now working with a group of investors to raise short-term capital and will “turn the capital-raising project over to a well-matched investment bank” as soon as possible.
The need for new capital coincides with expansion of Seabased into new export markets such as Ghana, it said.
"I am disappointed it didn't work out with Seabased Holding, but very pleased with the process now in place to bring fresh capital directly into Seabased AB,” said chief executive Mats Leijon.
Seabased Holdings could not be reached for comment.
Image: Wave farm in Sotenas, Sweden (Seabased)