Subsea 7 will combine its renewables business unit with Oslo-based OHT, creating a pure-play renewables company focussed on offshore wind.
The combined company will be headquartered in Oslo and renamed to Seaway 7 ASA. It will initially retain OHT’s listing on Oslo’s Euronext Growth market with plans for future listing on Oslo Børs.
Ownership will consist of Subsea 7 owning 72% and OHT’s shareholders 28% of the combined company. Seaway 7 is expected to employ around 600 people with an active fleet of ten vessels and two additional high-specification vessels under construction. It’s offering will include installation of wind turbines, foundations, offshore substations, submarine cables and heavy transport.
The closing of the merger is subject to approval by the shareholders of OHT. The combination has the recommendation of OHT’s Board of Directors. Songa Corp and Lotus Marine AS, with stakes of 51.1% and 25.6% respectively, have also agreed to approve the transaction. Approval by Subsea 7’s shareholders is not required.
Closing is anticipated for end of the third quarter of 2021
The Board of Seaway 7 ASA, chaired by Rune Magnus Lundetræ, will comprise four directors nominated by Subsea 7 and one nominated by OHT’s largest shareholder, Songa Corp. It’s executive team will be led by Stuart Fitzgerald as Chief Executive Officer, as well as Torgeir Ramstad and Steph McNeill holding executive roles.
Subsea 7 brings to the table a fleet of two heavy lift vessels, two cable lay vessels and an installation support vessel and experience installing over 700 foundations, more than 30 substations and over 800 kilometers of submarine cables since 2009. Subsea 7’s business in floating wind is not part of the transaction.
OHT’s fleet consists of five heavy transportation vessels for large offshore wind structures, as well as two high-end installation vessels currently under construction. The first, due for delivery in 2022, is a state-of-the art wind turbine foundation installation vessel equipped with dynamic positioning and a unique “smart deck” for efficient installation of monopiles and jacket foundations. The second is a jack-up heavy lift vessel capable of installing the largest wind turbines, as well as wind turbine foundations, and is due for delivery in 2023.
“This transaction represents an important next step in Subsea 7’s Energy Transition journey that will accelerate and enhance value creation for our shareholders,” said John Evans, Chief Executive Officer of Subsea 7. “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.”
Torgeir E. Ramstad, Chief Executive Officer at OHT, commented: “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.”
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