Clough to sell marine construction business to SapuraCrestNews // August 16, 2011
Clough Limited has agreed to sell its offshore marine construction division to SapuraCrest Petroleum Berhad (SapuraCrest), a company listed on the Malaysian stock exchange, for gross proceeds of approximately A$127 million in cash.
The companies have entered into a conditional Master Sale and Purchase Agreement with certain conditions precedent.
Clough's offshore Marine Construction Division includes the derrick lay barge Java Constructor and associated marine construction equipment.
Also included will be Clough’s interest in the Clough Helix Joint Venture, which operates the chartered Normand Clough vessel, and its investments in specialist engineering businesses, OFI and Peritus. Relevant contracts including the Chevron Gorgon Domestic Gas pipeline project are proposed to be novated.
Post transaction the division will continue to operate from Perth with a continuing focus on both the Australian and regional markets. Clough will continue to provide a number of back office services to the business for a period of two years.
The sale will see Clough exit the asset intensive offshore marine construction market.