Norwegian marine engineering and design house Sevan Marine has entered into an agreement with Sembcorp Marine Integrated Yards, a subsidiary of Singapore’s Sembcorp Marine, to sell interests and title to all of Sevan Marine’s intellectual property and proprietary business, employees, the shares of HiLoad LNG and other defined assets for a total price of $28m. Following completion of the transaction, the scope and scale of Sevan Marine’s operations will be substantially reduced.
“The transaction will result in Sevan Marine’s remaining business being limited, however generating operating revenues from existing licenses going forward with some upside potential,” Sevan Marine said in a release.
All of Sevan Marine’s operating and associated costs including unexpired leases in maintaining the three office locations and all the employees in Sevan Marine will be transfered to Sembcorp Marine.
The company’s CEO Reese McNeel has entered into a retention agreement with Sevan Marine and the company has the option to retain his services for an additional 12 months from completion on terms customary for such agreements.
“The agreement is the result of a long process in a challenging situation for the company. The board is pleased to enter into an agreement with a reputable industrial partner. We believe the transaction will be in the best interest of Sevan Marine, all of our shareholders, employees and business partners. It will enable us to distribute to the shareholders a substantial part of the value of the Company and provide an excellent service going forward. The board will work diligently to realise value from the remaining assets of the company,” said Erling Øverland, chairman of Sevan Marine.
The transaction is expected to be completed in the third quarter of 2018. Sevan Marine intends to retain its listing on the Oslo Børs.