Subsea 7, OHT to create pure-play renewables company – Seaway 7

Subsea 7 said that it will create Seaway 7 ASA, a pure-play renewables company, by merging its renewables business with Norwegian firm Offshore Heavy Transport (OHT) ASA.

While Subsea 7 is a subsea engineering, construction, and services company based in Luxembourg that caters to the offshore energy industry, OHT calls itself a specialist transport and installation contractor and vessel owner-operator.

The new company to be formed – Seaway 7 will be based in Norway where it will trade on Oslo Stock Exchange (Oslo Børs). Seaway 7 will be engaged in catering to the offshore fixed wind industry.

To begin with, Seaway 7 will use the listing of OHT on the Euronext Growth trading facility in Oslo.

Subsea 7, OHT to create pure-play renewables company – Seaway 7. Photo courtesy of SUBSEA 7.

John Evans – CEO of Subsea 7 said: “This transaction represents an important next step in Subsea 7’s Energy Transition journey that will accelerate and enhance value creation for our shareholders.

“As a listed company with a comprehensive fleet and experienced management team, Seaway 7 ASA is positioned to forge an enhanced growth trajectory as a global leader in offshore wind. Subsea 7 looks forward to working closely with Seaway 7 as it launches this next exciting chapter in its evolution.”

Subsea 7 will have a 72% ownership in the new renewables company, while the OHT will have the remaining stake of 28%.

Seaway 7 will operate as a single supplier of a variety of integrated or engineering, procurement, construction, and installation (EPCI) offerings that cover turbine installation for offshore wind farms, installation of turbine foundations and offshore substations, laying of submarine cables, and heavy transport.

The pure-play renewables company will have around 600 employees and an active fleet comprising 10 vessels, which will be joined by two more high-specification vessels, that are presently being built.

Seaway 7 is expected to have larger exposure to the high-growth offshore wind market after the company adds a couple of foundation and turbine installation vessels to its fleet during the next two years.

The merger deal is likely to be finalized by the end of the third quarter of this year. It will be contingent on customary conditions such as approval by OHT’s shareholders and regulatory approvals among others.

Songa and Lotus Marine, two of the major shareholders in OHT, holding 51.1% and 25.6% stakes, respectively in OHT, have committed to support the transaction.

Torgeir E. Ramstad – CEO of OHT said: “This is a very significant event in the growing Renewables industry. Subsea 7 is a highly respected company and we are delighted that it sees OHT as a natural partner in creating a new global leader in renewables.

“We are committed to translating the leading capabilities that the combined company will offer into benefits for clients within the offshore fixed wind industry.”