Global maritime industry group Wilhelmsen has increased its shareholding in Norwegian service provider to the oil and gas industry NorSea Group from 40 percent to around 72 percent.
As a result of the transaction, Eidesvik Eiendomsinvest AS and Simon Møkster Eiendom AS will hold approximately 12 percent each, while management in NorSea Group controls the remaining 4 percent.
Following the transaction, Wilhelmsen will buy a small portion of management controlled shares.
The change in shareholding passed the Norwegian Competition Authorities on Wednesday, September 20, and the transaction will take place on September 26.
Thomas Wilhelmsen, group CEO of Wilhelmsen, said: “We wish to have an exposure towards the energy market, primarily oil and gas, but also the offshore wind industry. With an increased shareholding, we look forward to continue to develop NorSea Group and be an active player in the oil and gas industry.”
John Stangeland, CEO in NorSea Group, added: “It is with great pleasure we are announcing that Wilhelmsen now has increased its shareholding in NorSea Group. With our core competence and Wilhelmsen’s global network and 156 years of experience and expertise, we see interesting opportunities ahead to the benefit of customers, suppliers and those of us who make up NorSea Group.”
Total consideration for the Wilhelmsen’s additional 32 percent investment in NorSea Group is NOK 545 million ($70 million). The investment is financed through existing liquidity and funding reserves.
Wilhelmsen originally acquired 35.4 percent of shares in NorSea Group in July 2012 and increased to 40 percent ownership in April 2014. The company’s equity investment in NorSea Group had a book value of $93 million at the end of the second quarter 2017. Also, Wilhelmsen has $18 million in shareholder loans to NorSea Group.
With effect from the fourth quarter 2017, NorSea Group will be reported as a subsidiary in the Wilhelmsen group accounts.
Total income, cost and balance sheet items of NorSea Group will then be consolidated on a 100 percent basis, with minority interests deducted on a net basis. NorSea Group has previously been reported as an associate in Wilhelmsen group accounts.
As part of the transaction, Nils Dyvik will step down as chair and leave the helm to Jan Eyvin Wang.