Norway's Havyard Group is planning a European IPO for its design and technology companies after quitting the newbuilding sector.
The spin-off of the "cleantech" businesses is being explored "as part of the process to strengthen the financial position and to unlock value", the Oslo-listed company said.
The operations involved are Havyard Design & Solutions, Norwegian Electric Systems, Norwegian Greentech and Havyard Hydrogen, its new unit set up to develop hydrogen fuel cells for vessels.
A listing could be pursued on the Euronext Growth exchange as soon as the first quarter of 2021, potentially in Brussels or Paris.
"The company sees significant market opportunities for these businesses going forward and believe a stand-alone and focused concern will be well positioned to take a leading position in the maritime green shift," Havyard added.
Discussions with banks
Talks are taking place with its lenders about the spin-off. Approval in principle has already been granted.
Havyard Group will retain a majority ownership stake in the new company.
This has been a difficult year for the group, whose Havyard Ship Technology yard company underwent bankruptcy restructuring in the spring, resulting in New Havyard Ship Technology being formed to continue the operations.
The yard is still building three service operation vessels for the wind farm sector for delivery by the third quarter of next year, but has said it will not build any more ships for the foreseeable future, focusing instead on repair.
The company is also cutting 100 jobs.
Covenants breached
Havyard said in its third quarter report this week that it was in breach of financial covenants. Long-term interest bearing bank loans have been reclassified as short-term.
In September, the group agreed on a postponement of maturity for its bonds until December, as well as halting loan payments to Norway's DNB Bank.
Further freezes are being discussed, the company said.
Net profit in the third quarter was NOK 42m ($4.7m), from a loss of NOK 130.6m a year ago. Ebitda was NOK 19m, compared to a loss of NOK 145m.
Revenue grew to NOK 511m, versus NOK 326m in 2019.
Havyard has said its hydrogen power solution for ships will be ready by next year. The fuel cells are aimed at larger ships sailing longer distances with zero emissions.
The group also revealed Norwegian Greentech has signed a huge deal to supply Norwegian mini-bulker owner Wilson with ballast water treatment systems for all its 120 ships.
The work will take place up to 2024. The value of the contract was not revealed.
