Two major offshore accomodation platform operators Prosafe and Floatel International have mutually decided to discontinue their merger process due to financial uncertainty and process risk.
The two companies reached a conclusion that any near term completion of a value enhancing merger is unlikely.
Floatel and Prosafe signed a merger agreement in June last year, however the potential merger was opposed by competition authorities from both Norway and UK, who have concerns that the merger would reduce competition in the supply of offshore accommodation support vessels for oil and gas projects, while customers may face higher prices or lower quality offers due to insufficient competition.
Separately, Prosafe has received consent from all lenders to further defer payments of scheduled instalments and interests under both its $288m and $1,300m facilities until March 31.
Prosafe currently owns a fleet of nine semi-submersible accommodation platforms with another two newbuildings under construction while Floatel owns five similar units.