Marine contractors joins forces to create pure-play renewables EPCI outfit
Subsea 7 has reached an agreement to combine its renewables business with OHT ASA.
The combined company will be renamed Seaway 7 ASA and will initially retain OHT’s listing on Oslo’s Euronext Growth market, with a view to a future listing on Oslo Bors.
Subsea 7 will own 72% and OHT’s shareholders 28% of Seaway 7 ASA.
The transaction will create a listed, pure-play renewables company, headquartered in Oslo and focused on offshore fixed wind.
Seaway 7 ASA will be a single supplier providing an enhanced range of standalone, integrated or EPCI offerings encompassing installation of wind turbines, foundations, offshore substations, submarine cables and heavy transport.
The new global entity will employ around 600 people, with an active fleet of 10 vessels and two further high-specification vessels under construction.
Seaway 7 ASA will operate a “high-end, differentiated fleet with enabling capabilities and scale, allowing efficient worldwide operations, while providing vessel flexibility and optionality to clients”.
The company will increase its exposure to the high-growth offshore wind market, with the timely and cost-efficient addition of two “best-in-class” foundation and turbine installation vessels in 2022 and 2023.
Subsea 7 chief executive John Evans said: “This transaction represents an important next step in Subsea 7’s Energy Transition journey that will accelerate and enhance value creation for our shareholders.
“As a listed company with a comprehensive fleet and experienced management team, Seaway 7 ASA is positioned to forge an enhanced growth trajectory as a global leader in offshore wind. Subsea 7 looks forward to working closely with Seaway 7 as it launches this next exciting chapter in its evolution.”
OHT CEO Torgeir Ramstad added: “This is a very significant event in the growing Renewables industry.
“Subsea 7 is a highly respected company and we are delighted that it sees OHT as a natural partner in creating a new global leader in renewables. We are committed to translating the leading capabilities that the combined company will offer into benefits for clients within the offshore fixed wind industry.”
Completion of the combination is subject to approval by the shareholders of OHT at an extraordinary general meeting.
As majority shareholder, Subsea 7 will consolidate Seaway 7 ASA in its financial statements and the entity will benefit from financial, operational, administrative and strategic support from the Subsea 7 Group.
It is anticipated that the transaction will be accretive to Subsea 7’s earnings from 2024 after delivery of the two newbuild vessels.