SINGAPORE – Sembcorp Marine Ltd. AS has acquired an additional 44% equity in Gravifloat AS for $38 million, increasing its total interest in the company up to 56%.
The company had announced its initial 12% acquisition in Gravifloat in June 2014. With its equity raised to 56%, Gravifloat will become a Sembcorp subsidiary following the completion of the acquisition.
Under the agreement, Sembcorp will eventually buy out the remaining 44% to wholly own Gravifloat, which designs and holds patents for a suite of modularized solutions based on near-shore gravity-based LNG terminals.
Gravifloat-designed facilities are re-deployable, steel-based structures that offer the advantages of a floating solution. Sembcorp said that these floatable modules can be fully constructed and tested at a shipyard leveraging their expertise.
Wong Weng Sun, president and CEO of Sembcorp Marine, said that the increased stake “reflects our strategy to broaden and deepen the group’s range of proprietary designs and solutions to develop new state-of-the-art facilities for the fast evolving LNG and LPG industries.”
This acquisition will allow Sembcorp to expand its services by moving into offshore gas processing units, the company said, noting that it believes that Gravifloat terminals offer a more cost-competitive solution compared with alternatives like FSRUs, FLNG units, and land terminals and can be designed for both liquefaction and receiving terminal services.
This comes days after news that another Sembcorp subsidiary Dolphin Shipping Co. Private Ltd. completed the sale of its entire 50% equity interest in Dolphin Workboats Pte Ltd. for a cash consideration of S$450,000 ($325,981) to existing shareholder Entraco Venture Corp. Pte Ltd.
Sembcorp said that the consideration was agreed between the parties on a willing-buyer willing-seller basis after taking into consideration the net equity of Dolphin Workboats as at Dec. 31, 2015.
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