Singapore’s Swiber Group has been saved by Seaspan, the Canadian containership operator, which is making what it says will be a one-off investment in the offshore business, investing $200m in the struggling offshore firm.
New York-listed Seaspan surprised the markets yesterday inking a binding term sheet for 80% of Swiber’s enlarged capital and new preference shares in subsidiary Equatoriale Energy
Swiber said following the Seaspan investment it will diversify into the power business and restructure debt under deal terms
Judicial manager Bob Yap, who has been looking after Swiber’s restructuring in Singapore, said: “The conventional oil and gas sector has faced difficult conditions in recent years. However, with growing demand for power in Southeast Asia, there are substantial opportunities for companies to develop clean energy solutions such as power generated from LNG. Against this backdrop, we are delighted that a reputable and established company like Seaspan has chosen to invest in Swiber. We believe that this deal offers a step forward in reviving Swiber as a going concern, and delivering a positive outcome for creditors and shareholders.”
Seaspan president and CEO Bing Chen said: “We are excited to partner with Swiber. Together, with Swiber’s operational and engineering capabilities, Seaspan’s leading maritime asset management platform, and our chairman David Sokol’s energy-related expertise, we will unlock substantial value.”