Offshore accomodation providers Prosafe and Floatel International have signed an agreement to merge in an all-share deal.
The companies said the merger will help sustain a prolonged cyclical downturn and challenging markets for offshore accommodation.
Oslo-listed Prosafe will acquire Floatel with the issuing of Prosafe shares, giving Floatel’s principal shareholders a large shareholding in Prosafe.
Glen Ole Rødland, chairman of Prosafe, commented: “The need for consolidation in oil services is well known. We consider this transaction not only strategically sound, but also necessary to adapt to the significant changes in our markets and competitive landscape in recent years.”
The transaction is expected to be completed in the third quarter of 2019, and the merged entity will own a fleet of 14 vessels in total, with the bulk of its activities in the North Sea and Brazil.