Fugro has sold off its subsea services business in Asia Pacific to Shelf Subsea for US$15.6 million and gets a 25 per cent equity stake in the private equity firm.
The deal involves the transfer of 3 vessel charter contracts, 1 owned vessel, 18 remotely operated vehicles and 285 Fugro employees located in offices in Perth and Singapore. The regional director for Fugro Asia division, Colin McGinnis, will become the CEO of Shelf Subsea.
In addition to the financial payment, Fugro will become an approximately 25 per cent shareholder in Shelf Subsea that will create the opportunity for Fugro to share in value creation at Shelf Subsea.
John Edwards, chairman Shelf Subsea, said: “The acquisition of the APAC subsea business of Fugro and the companies’ future relationship are very complementary to our existing capabilities and will see the combined entity become a leading independent subsea contractor in this region, well positioned to take advantage of anticipated improving market conditions."
Paul van Riel, CEO Fugro added: “The transaction represents an important strategic step for Fugro to focus our portfolio around our core geotechnical, survey and related businesses. We are pleased to have acquired a stake in Shelf Subsea going forward to retain upside on our investment and to cement the relationship between our companies."
The deal is expected to be finalised in the next few months.