EuropeFinance and InsuranceOffshore

Reach Subsea receives $17m investment offer from undisclosed partner

Norwegian offshore services player Reach Subsea has received an offer from an undisclosed strategic partner for an equity investment of NOK150m ($17m) in Reach and a collaboration on commercialisation of Reach Remote, an unmanned surface vehicle (USV) the company plans to roll out in 2023.

The offer is for Reach to issue around 46.1m new shares towards the investor at NOK3.25 per share. The offer also includes the issuance of warrants at a subscription price of NOK4 per share, whereby each warrant will give the investor the right to subscribe to one new Reach share. The warrants have a duration of 3 years and can be exercised at any time, giving the investor an option to potentially end up with a 33% ownership stake.

“The board of Reach is positive on the proposed offer, which is subject to relevant corporate approvals by both parties and certain other conditions. The board will work towards finalising and concluding an agreement within the next couple of weeks, to be put forth to an extraordinary general meeting in Reach,” the company said in an Oslo Exchange filing on Tuesday.

The Haugesund-based company has marked its best fourth quarter and annual results in its history with revenue for the full year 2021 of NOK686.6m and a pre-tax profit of NOK73m. “We are on track for the delivery of our first Reach Remote USV in 2023. By 2025, our ambition is to provide a full portfolio of subsea services from a low-emission, cost-effective remote and autonomous fleet by 2025,” said Reach Subsea’s CEO, Jostein Alendal.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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