Sembcorp Marine Ltd.’s subsidiary Sembcorp Marine Integrated Yard Pte. Ltd. (SMIY) has entered a sale and purchase agreement with its existing shareholders to acquire a 100% equity stake in LMG Marin AS for US$20 million, according to a news release.
Headquartered in Norway, LMG is a ship design and engineering house with experience building floating structures, platforms and ships such as drillships, FPSO vessels, floating storage and offloading vessels, offshore support vessels, LNG carriers and LNG-powered ships.
Sembcorp Marine said LMG originated several key designs adopted by Sembcorp Marine. These include the:
- Next-generation Espadon drillship design;
- FSO design used in the ongoing construction of the company’s newbuild FSO for deployment in the U.K. North Sea and
- Gravifloat modular LNG and LPG platform solutions that are a cost-competitive alternative to FSRU, FLNG and land-based terminals.
The Robusto FPSO hull design, customized for operation in Brazil and West Africa, is another notable LMG creation, Sembcorp Marine said in the release.
The acquisition will be fully paid in cash by internally generated funds, the release said. As of July 31, the estimated net tangible asset value is $3.8 million.
Following the acquisition, LMG will become an indirect wholly-owned subsidiary of Sembcorp Marine. The acquisition also brings into Sembcorp Marine a cache of design patents and expertise in naval architectural design, engineering and technology development, the company said.
“Through the strategic acquisition of LMG, Sembcorp Marine further strengthens its intellectual property and knowledge to execute leading-edge design and engineering solutions for the global offshore and marine sectors,” said Sembcorp Marine President and CEO Wong Weng Sun. “This in turn supports our ongoing efforts to move up the value chain so that we can compete better and do more for our customers and partners.”
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