Bourbon, a French offshore marine services provider, is backing away from its plans to acquire a share in the ethane transportation business.
To remind, the company in March said it would acquire Jaccar Holding’s activities in ethane transportation, a market for which Bourbon said was expected to have strong growth.
It then said the company seeking the diversification of its activities in addition to its main business in offshore services sector.
The acquisition, now cancelled, would, have included a fleet of 17 vessels dedicated to the transport of ethane gas, ethylene and LNG; and 80 % of JHW Engineering & Contracting, a company dealing with 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.
The purchase would have cost Bourbon $320 million.
However, in a statement on Tuesday, May 17, Bourbon said that it could not obtain the required financing for the acquisition of the gas activities of JACCAR “within the timeframe stated in the Framework agreement governing the investment.“
Thus, the company’s board removed the resolution related to the ratification of the proposed transaction from the agenda of the Annual Shareholders meeting of May 26, 2016.
“The diversification of BOURBON in this new activity remains a strategic objective for the company. Bourbon, illustrating a strong resilience in the low point of the cycle of the offshore market, is reinforcing its position in its main market and will be the first to take advantage of the recovery of activity when it will happen. It will then be able to ensure a new step in its development.”