BOURBON to service the customers' new focus on energy transition by investing in the Gas sector
29 Mars 2016 - 8:01AM
Paris, March 29, 2016
BOURBON to service
the customers' new focus on energy transition
by investing in the Gas sector
BOURBON has become the leader in
offshore marine services after a long development program
consisting of significant investments in innovative vessels built
in series, enabling greater operational and cost control for its
clients.
In the very difficult market
facing the offshore services sector, BOURBON is particularly
resilient due to its operational performance and cost control but
also due to the end of its investment program which is enabling
free cash flow generation.
However, the direction taken by
its customers towards the energy transition that is underway is
driving BOURBON to seek the diversification of its activities to
support these new directions and open real growth prospects.
Therefore, BOURBON has decided to
acquire the activities of the global leader in ethane
transportation, with a market share greater than 50% in a market
expected to have strong growth.
It comprises the following
companies who are currently owned by their majority shareholder,
JACCAR Holdings:
-
100% of Greenship Gas, a Singaporean owned
"shipping trust", comprising directly or indirectly of:
-
A fleet of 17 vessels (of which 13 vessels are
currently in service) dedicated to the transport of Ethane gas,
Ethylene and LNG and having an average age of 3,5 years;
-
100% of EVERGAS, operator and contractor of gas
transportation services (www.evergas.net);
-
100% of Greenship Gas Manager Pte. Ltd, manager
of the Greenship Gas "shipping trust";
-
80 % of JHW Engineering & Contracting
limited. This company encompasses the design and engineering of
vessels, the technology and control of a manufacturing platform for
mega-tanks as well as procurement activities and contracting and
management of gas projects (www.jhwshanghai.com).
The final completion of the
acquisition, which was authorized by the Board of Directors on
March 28, taking into account the opinion of an ad hoc committee
and the opinion of an independent expert, is subject to
ratification by shareholders at the Annual General Meeting on May
26, 2016, during which related parties will vote their shares in a
manner so as to not influence the decision.
The purchase price for these
companies is US$320 million with a net debt as of December 31, 2015
of US$389, the financing of the vessels being transferred as part
of the transaction.
BOURBON will benefit from a
seller's credit of US$100 million with no interest for a maximum
period of three years. It is anticipated to have in place a US$220
million bridge loan for a maximum period of three years. In fact,
BOURBON will proceed, once the transaction is completed, with the
resale of 80% of the ownership of the vessels, which will then be
retained on bareboat charter for a minimum period of ten years. The
bridge loan signed at the time of the acquisition would then be
reimbursed and the impact on BOURBON's debt decreased
significantly.
Following approval of the
transaction at the end of the Annual General Meeting on May 26,
2016 at which time he will be at the end of his mandate, M. Jacques
de Chateauvieux would be named Chairman and CEO of BOURBON.
The perspectives "BOURBON Beyond
BOURBON" will be presented later today in Paris and will be
available on BOURBON's web site on March 30, 2016 at the end of the
day (www.bourbonoffshore.com).
About BOURBON
Among the market
leaders in marine services for offshore oil & gas, BOURBON
offers the most demanding oil & gas companies a wide range of
marine services, both surface and sub-surface, for offshore oil
& gas fields and wind farms. These extensive services rely on a
broad range of the latest-generation vessels and the expertise of
more than 11,000 skilled employees. Through its 34 operating
subsidiaries the group provides local services as close as possible
to customers and their operations throughout the world, of the
highest standards of service and safety.
BOURBON provides
two operating Activities (Marine Services and Subsea Services) and
also protects the French coastline for the French Navy.
In 2015,
BOURBON'S revenue came to €1,329.6 million and the company operated
a fleet of 511 vessels as of December 31, 2015.
Placed by ICB
(Industry Classification Benchmark) in the "Oil Services" sector,
BOURBON is listed on the Euronext Paris, Compartment B.
Contacts
BOURBON
Investor Relations,
analysts, shareholders
James Fraser, CFA
+33 491 133 545
james.fraser@bourbon-online.com
Corporate
Communications
Christelle Loisel
+33 491 136 732
christelle.loisel@bourbon-online.com
Media relations agency
Publicis Consultants
Vilizara Lazarova
+33 144 824 634
vilizara.lazarova@consultants.publicis.fr
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The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: BOURBON via Globenewswire
HUG#1997760