Norwegian OSV Mega-Merger Completed

offshore construction vessel
Credit: Solstad Offshore

The world’s largest high-end offshore service vessel company was created Wednesday with the completion of the mergers involving former Norwegian offshore shipping companies Farstad Shipping, Deep Sea Supply and Solstad Offshore, with the latter being the surviving entity.

The new company, named Solstad Farstad ASA, will operate out of Skudeneshavn, Norway with a fleet of 152 OSVs, comprising 33 CSVs, 64 PSVs and 55 AHTS. The mega-merger was first announced in February amid the prolonged downturn in the offshore oil and gas industry.

“Today marks the beginning of a new company based on the proud heritage of three leading OSV companies. Over the last few months, the three organizations have worked together on the closing process and prepared the important integration process. I want to use the opportunity to thank everyone who has been involved and put in a lot of effort over the last months. Now, the real work starts as we need to extract the cost and revenue synergies identified”, said Lars Peder Solstad, CEO of Solstad Farstad ASA.

Trading of the new company will begin Thursday on the Oslo Stock Exchange under the ticker SOFF. Meanwhile, Farstad Shipping ASA and Deep Sea Supply Plc have been dissolved and removed from listing on the Oslo Stock Exchange.

Following the combination, shareholders in the new company are Aker ASA holding 23.1%, Hemen Holding Limited, he trust belonging to John Fredriksen for the benefit of his immediate family, holding 16.1%, and the Solstad family holding 7.2%. On a consolidated basis, the Farstad family also holds 1.5% of shares and votes.