Subsea 7 seeks SHL control
Company offers initial $279m for remaining stake in Dutch contractor
Subsea 7 has made an offer to acquire the outstanding 50% interest in Seaway Heavy Lifting (SHL) currently owned by K&S Baltic Offshore.
The company, which currently owns the other 50% in SHL, said the offer is for an initial consideration of $279m on completion and a deferred consideration of up to $40m.
The $40m would be paid at the end of the first quarter of 2021 on condition that “certain performance targets are met”, Subsea 7 added.
It said the offer will be funded by its “existing cash resources”.
Dutch offshore contractor SHL operates two heavy lift vessels – Stanislave Yudin and Oleg Strashnov (pictured) – and employs approximately 550 people.
Subsea 7 said the terms of the offer are binding until 1 July. “During this period the works council representing the employees of Seaway Heavy Lifting in the Netherlands will be consulted in compliance with Dutch law,” it added.
Subsea 7 chief executive Jean Cahuzac 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.”