Subsea 7 to acquire Siem subsidiary and two vessels

MARCH 1, 2018 — Subsea 7 S.A. reports that it has signed an agreement to acquire Siem Offshore Contractors GmbH and two vessels, subject to competition clearance in Germany. The acquisition will include the entire issued share capital of Siem Offshore Contractors, the inter-array cable lay vessel Siem Aimery and the support vessel Siem Moxie.

Siem Offshore Contractors is an installer of subsea inter-array cables and provides repair and maintenance services to the global offshore renewable energy market. It employs approximately 100 people. The vessels, Siem Aimery and Siem Moxie, are owned by Siem Offshore Rederi AS. Siem Offshore Contractors GmbH and Siem Offshore Rederi AS are wholly owned subsidiaries of Siem Offshore Inc., which is a related party to Subsea 7 S.A.

The initial consideration is agreed to be EUR 140 million (about $170 million), split between EUR 90 million for the vessels and EUR 50 million for the shares.

Siem Offshore says the initial proceeds from the sale will be used to pay down the bank loan on Siem Aimery and Siem Moxie which amounts to around EUR 60 million. The excess cash generated by the transaction will be applied to increase amortization and pre-pay debt.

Siem Offshore Inc's Chief Executive Officer Bernt Omdal comments: "With this transaction the cable lay activities of SOC is combined with the renewables business of Subsea 7 where it strategically belongs and where it is likely to prosper and grow. The transaction will further strengthen the balance sheet of Siem Offshore and the company will maintain a financial position stronger than most of its competitors. The ompany will now focus fully on its vessel business."

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