Norwegian tycoon Kristian Siem is looking to buy out all other investors in Siem Offshore as he positions the shipowner more towards renewables.
Oslo-listed Siem Offshore said in a filing that Siem Renewables will make an offer for the owner of offshore vessels that will cost about $88m at Tuesday’s share price.
Siem Renewables is a shell company owned by Siem Industries and will change its name to Siem Sustainable Energy (SSE) if it succeeds in bringing in Siem Offshore as a subsidiary.
The intention is to list SSE on the Oslo Stock Exchange and delist Siem Offshore.
“The contemplated new group structure will pursue new operations aimed at the energy sector, including renewable energy,” Siem Offshore said.
The offshore vessels will continue to be operated while a separate subsidiary develops more renewables business.
Kristian Siem pushed through offshore wind vessel consolidation last year by merging the renewables part of his oil and gas contracting company Subsea 7 with Norwegian shipowner OHT to create Seaway 7.
The Siem Offshore share was trading down 11.5% at NOK 5.52 in Oslo following the announcement on Tuesday.
A $1bn refinancing of the company was completed in May 2021 that saw the stake of chairman Siem’s Siem Industries reduced to 33.6% from 83% as debt was swapped for equity.
Stoperigata Holding, a wholly owned subsidiary of Norway’s Guarantee Institute for Export Credit (GIEK), is second on 32.55%.
Then comes French bank BNP Paribas on 5.2%.
‘Squeeze-out’ on the cards
Siem Offshore management will remain in place if the deal goes through.
If the offer receives acceptances of 95% or more, the intention is to carry out a “squeeze-out” of the remaining outstanding shares.
SSE has secured commitments for an equity issue worth up to NOK 80m to finance this.
Shareholders representing about 38% of the shares are backing the offer, the shipowner said.
Siem Offshore controls 34 vessels, including platform supply ships, anchor-handling tug supply units and construction ships.
The company returned to profit with a net gain of $7.1m in the final three months of 2021, against a loss of $48.7m in the same period of 2020.
Revenue grew to $65.3m, from $57.1m the year before.
