Subsea 7 Aims at Full Ownership of Seaway Heavy Lifting

Subsea 7 informed today that it had made an offer to acquire the 50% shareholding in Seaway Heavy Lifting (SHL) currently owned by K&S Baltic Offshore (Cyprus). If the offer is accepted, Subsea 7 would become the sole owner of SHL, since it already holds a 50% interest in the company.

SHL's heavy lift vessel Stanislav Yudin (Photo: Seaway Heavy Lifting/ archive)

The offer comprises 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.

Seaway Heavy Lifting, headquartered in the Netherlands, employs approximately 550 employees. With the terms of the offer being binding on Subsea 7 until 1 July 2017, the Works Council representing SHL’s employees in the Netherlands will be consulted in compliance with the Dutch law during this period, Subsea 7 said.

Jean Cahuzac, CEO of Subsea 7, 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.”

At the end of November 2016, SHL was signed up as an EPCI contractor for wind turbine foundations for the Trianel Windpark Borkum II offshore wind farm in Germany. Also, together with its 50% owner Subsea 7, the company has been awarded an EPCI contract for foundations and array cables for the Beatrice offshore wind farm in Scotland.