Sevan Marine ASA has on April 3 entered into an agreement with Technip Norge AS (“Technip”), a wholly owned subsidiary of Technip S.A, regarding the sale of 49.0% of the shareholding in KANFA AS (“KANFA”).
The parties have agreed not to disclose the purchase price at this point in time. Upon completion of the transaction, Sevan Marine will own 51.0% of KANFA AS and Technip will own 49.0%. The parties intend to further enhance KANFA’s development opportunities and expand the business.
KANFA, with its subsidiaries KANFA Ingenium Process AS (54.3% owned subsidiary) and KANFA Mator AS (wholly owned subsidiary), is a leading independent topside and process technology specialist with activities primarily in the offshore oil and gas industry. In total, the KANFA Group employs approximately 50 highly skilled engineers.
Technip is one of the leading oil & gas services groups in the world with a global footprint. The cooperation will provide KANFA with new opportunities to develop its business in the North Sea and also provide access to other oil and gas markets. KANFA will continue to focus on its existing business model in addition to supporting Technip in offshore FEED and EPC projects on the Norwegian Continental Shelf going forward.
Commenting on the transaction, Sevan Marine CEO Carl Lieungh said: “We are very satisfied with this agreement and the opportunity to work with Technip. We have evaluated various strategic alternatives for KANFA for some time and are confident that this will benefit both KANFA and the owners. KANFA has high ambitions to expand the business and we now have a strong position to seize new business opportunities in areas with mutual interests. With continued ownership in KANFA, Sevan Marine will benefit from future growth.”
Odd Strømsnes, Managing Director of Technip in Norway, stated: “KANFA brings additional topside and process competence to Technip in his region and reinforces Technip’s presence in the North Sea offshore facility market. Technip has been present in Norway for the last 25 years as a leading contractor in subsea developments and offshore infrastructures and has around 750 employees. This agreement will indeed strengthen our position in the topside market and reinforces our capabilities and extend the range of solutions we can offer our clients.”
The agreement contemplates a potential exit subject to certain conditions in 2017. The agreement with Technip is subject to customary closing conditions. Closing of the transaction is expected to take place by the end of April.
KANFA’s shareholding in KANFA Aragon (50.0% ownership) has been transferred to Sevan Marine and will not be part of the transaction with Technip. KANFA Aragon will be operated on a stand-alone basis going forward.
ABG Sundal Collier Norge ASA is acting as financial advisors to Sevan Marine in relation to the transaction. The law firm BA-HR is acting as legal advisors.