Dutch subsea services provider Fugro NV has decided to no longer pursue the divestment of its subsea services business in Asia Pacific to Shelf Subsea.
Fugro informed on August 4, 2016, that it had signed an agreement for the sale of its subsea services business in Asia Pacific to Shelf Subsea for approximately EUR 14 million ($14.9M) cash and issuance of around 25% equity in Shelf Subsea to Fugro.
The Shelf Subsea business was formed in 2015 by private equity investors SCF Partners, Viburnum Funds and senior management. It operates from offices in Perth and Singapore.
According to the agreement from August, the transaction was supposed to involve 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.
Fugro said on Monday the parties were unable to reach agreement on some closing conditions, following which Fugro has decided to no longer pursue the transaction.
As a result, Fugro will retain the vessels, ROVs, other equipment and personnel related to the business and will not acquire an equity interest in Shelf Subsea. The subsea services activities in Asia Pacific will be incorporated in and reported as part of the Marine division, in the new divisional structure as of 2017.
The company added it will continue to explore partnership opportunities to reduce its exposure to the larger vessels used for the installation and construction part of the business.
Fugro noted that the cancellation of the agreement has no material adverse effect on Fugro’s overall financial position.