Subsea 7 to merge Seaway 7 unit with Norway's OHT

Offshore contractor Subsea 7 SA (OSL:SUBC) on Thursday announced that it has agreed to combine its renewables business unit with Norwegian heavy transport vessel operator OHT ASA (OSL:OHT) to create a pure-play one-stop shop for bottom-fixed offshore wind projects.

Subsea 7’s renewables unit Seaway 7 provides a variety of engineering services for offshore wind and floating wind projects, but the floating wind segment will be excluded from the merger.

The resulting entity will take the name Seaway 7 ASA and set the headquarters in Oslo. It would initially keep OHT’s listing on Oslo’s Euronext Growth market, but eventually seek listing on the main board of Oslo Børs, Subsea 7 said.

Subsea 7 intends to take a 72% stake in the new company, while OHT’s shareholders would hold the remaining 28%.

The “combination” needs to be approved by OHT’s shareholders at an extraordinary general meeting. The board of directors of OHT has agreed to recommend the transaction, while two major shareholders, Songa Corp and Lotus Marine AS, which hold a combined 76.7% stake, approved the move, Subsea 7 said.

The green light from Subsea 7’s shareholders is not required, the company added.

The new incarnation of Seaway 7 is envisioned as a single supplier capable of providing a range of standalone, integrated and engineering, procurement, construction and installation (EPCI) offerings spanning installation of wind turbines, foundations, offshore substations, submarine cables and heavy transport, according to Subsea 7.

If created, Seaway 7 ASA would employ around 600 people and have ten vessels in its possession, including OHT’s five heavy transportation vessels. OHT will also contribute two turbine and foundation installation vessels that are currently under construction and due for delivery in 2022 and 2023.

The transaction is seen to finalise by the end of the third quarter of 2021, subject to approval and other customary closing conditions.

Choose your newsletter by Renewables Now. Join for free!