Singapore-listed offshore vessel operator and marine engineering company Kim Heng is taking full control of shipowning venture Bridgewater Offshore.
Kim Heng has agreed to buy private equity partner Phillip Capital’s 49% stake in Bridgewater for $5.1m, it said in a stock exchange announcement.
Under the terms of the deal, Kim Heng will buy Phillip Capital’s $4.26m shares in Bridgewater in three equal tranches.
The first tranche was acquired on 23 August, with the remaining shares to be bought on 23 September and 23 October.
Bridgewater was incorporated as a joint venture in 2019 and has a fleet comprising of seven medium and one large anchor-handler tug supply vessels.
These ships were acquired for very low prices during the offshore downturn.
Most were bought for between $2.3m and $3.3m.
Many acquisitions were subsequently flipped to other offshore companies, earning Bridgewater a tidy profit on each deal.
Today, according to VesselsValue, Bridgewater’s fleet is worth a combined $53.5m, or $7.65 per ship.
Kim Heng said it is acquiring Phillip Capital’s stake as both funds the private equity company had used to invest in Bridgewater were reaching the end of their fund lifecycle.
This, the company said, allows it to consolidate its interest in Bridgewater and use its fleet for its OSV chartering business.
“The board considers the proposed acquisition to be in the commercial interests of the group as it will enhance the capacity and capability of the group’s chartering segment,” Kim Heng said.
“Barring any unforeseen circumstances, it is expected to contribute positively to the group’s financial performance.”
