Transit Invest takes control at Reach SubseaNews // November 5, 2012
Transit Invest ASA has executed a contribution agreement pursuant to which it shall acquire all the shares in Reach Subsea AS against consideration in the form of 13,183,578 new shares.
In connection with the combination, Transit and Reach will establish a syndicate consisting of Reach Subsea's management and a few external investors in connection with a contemplated private placement of up to NKr 42 million.
"Having conducted a strategic review of potential new business opportunities, Transit’s board of directors has concluded that the outlook in the subsea sector looks very promising, with anticipated strong growth in demand," said Transit.
"Accordingly, the board of directors believes that the combination will open for attractive opportunities for the company.
"Through the combination, the company will make a significant shift towards the subsea sector. The strategy of the combined group going forward will be to become a complete subsea services provider, by building on and benefiting from the extensive industry experience and competence of the management and employees in Reach, headed by CEO Kåre Johannes Lie."
The contribution agreement was entered into by Transit, all shareholders in Reach, and by Caiano AS, Caiano Ship AS and Aage Thoen Ltd AS (the main shareholders in Reach Subsea) who in aggregate own 70.53 per cent of the shares in the company.