The transaction will create Seaway 7, a Norway-based pure-play renewables company
Subsea 7 will have a stake of 72% in Seaway 7. (Credit: SUBSEA 7)
Subsea 7 has agreed to merge its renewables business unit with OHT, a Norwegian heavy lift vessels and offshore wind installation vessels operator.
The merger will create a pure-play renewables company called Seaway 7, based in Norway. To be listed on Oslo Børs, Seaway 7 will focus on offshore fixed wind.
Initially, the company will retain OHT’s listing on Euronext Growth market in Oslo.
Subsea 7 will have a stake of 72% in the new company, while the remaining 28% stake will be held by OHT.
The subsea engineering company’s existing renewables business has been engaged in the offshore wind farm market for more than 10 years.
On the other hand, OHT has been a specialised heavy transportation and installation (T&I) contractor. The company is set to add a new heavy lift crane installation vessel to its fleet this year.
OHT CEO Torgeir Ramstad said: “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.”
According to Subsea 7 and OHT, Seaway 7 will be a single supplier of integrated or engineering, procurement, construction, and installation (EPCI) offerings. These include installation of wind turbines, foundations, submarine cables, offshore substations, and heavy transport.
Seaway 7 will have a workforce of nearly 600. It will have an active fleet of 10 vessels alongside two additional high-specification vessels, which are currently under construction.
The company’s high-end, differentiated fleet will offer vessel flexibility as well as optionality to clients.
Subsea 7 said that the new company will have a bigger exposure to the high-growth offshore wind market following the addition of two foundation and turbine installation vessels next year and in 2023.
Subsea 7 CEO 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.”
The merger, which is subject to OHT’s shareholders’ approval, regulatory approvals, and other customary conditions, is expected to be closed by the end of Q3 2021.
The deal is being backed by two of OHT’s major shareholders – Songa and Lotus Marine, which have stakes of 51.1% and 25.6%, respectively.