Norwegian OSV Companies Agree Merger
Norwegian OSV companies Solstad Offshore, Farstad Shipping and Deep Sea Supply have signed off on merger plans first announced on February 6, 2017.
Deep Sea Supply and Farstad Shipping will merge into and be established as individual subsidiaries under Solstad Offshore, with shareholders of Deep Sea Supply and Farstad Shipping receiving shares in Solstad Offshore as consideration.
The new consolidated group, Solstad Farstad, will combine Solstad Offshore’s construction support vessel (CSV) capabilities with Farstad Shipping’s AHTS experience, international presence and good, long-standing position in Brazil and Australia, together with Deep Sea Supply’s cost efficient PSV operating model.
This will enable realization of substantial cost and revenue synergies in the range of NOK 400-650 million annually, say the participants.
The merger will create the largest company in the high-end PSVs over 3,200 dwt market, the AHTS with more than 15,000 bhp market and will result in a fleet of over 150 vessels. When including all vessel classes and lower spec vessels, the merged company ranks fourth globally. The company will operate a fleet of 33 CSV, 66 PSV and 55 AHTS vessels deployed globally in deepwater hubs.
Lars Peder Solstad will be the Chief Executive Officer of the combined company, which will be headquartered out of Skudeneshavn, Norway.
“With this solution, we provide Farstad, Solstad and Deep Sea Supply with an industrial platform to sustain the current downturn in the OSV market and be well positioned to exploit a market recovery,” said Karl Johan Bakken, CEO of Farstad Shipping, announcing the deal in February.
Aker Capital, a subsidiary of Aker ASA, will hold 20.1 percent of the shares, and Ocean Yield ASA, a subsidiary of Aker, will hold 3.0 percent of the shares. Hemen Holding Limited will hold 16.1 percent of the shares. The Solstad family will, through its related companies SOFF Invest AS and Ivan II AS, hold approximately 7.2 percent of the shares.