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    Zaliv acquires 51 per cent of shipbuilding division of Bergen Group

    News // July 22, 2013

    Bergen Group has confirmed that it has entered into a share purchase agreement for the group's shipbuilding division with JSV Zaliv Shipyard in Ukraine, which is one of the leading hull construction shipyards in Central and Eastern Europe.

    For a purchase price of US$18.2 million, Zaliv will acquire 51 per cent of the shares in a newly incorporated company which will own all of Bergen Group's shipbuilding assets, other than existing projects, which will remain with Bergen Group.
    Zaliv was established in 1938. It is situated on the shore of the Kerch Strait, between the Black Sea and the Sea of Azov in Ukraine. It has a strong track record, especially with regards to building high quality hulls for the oil and gas industry in past six years. Zaliv has its own design bureau - Zaliv Ship Designer. In 2012, it constructed six extensively outfitted hulls, repaired 35 vessels and exported its products to customers in the Netherlands, Norway and other countries.
    The new company will, said Bergen group, "provide an improved financial platform, stronger product portfolio, complementary knowledge and increased capacity throughout the entire production process."
    "Bergen Group is excited to bring the Group's shipbuilding activities to a new level. The new constellation brings in a strategic partner that will considerably strengthen both the control of the value chain from basic design,
    detailed engineering and hull construction to final delivery of the vessels. The new company will have a strong position for international competitiveness and future growth", said Asle Solheim, CEO at Bergen Group.

    "The complementary fit between the two entities makes us very confident that the new company will play an important role as a leading international shipbuilder for advanced vessels in the future", he said.

    Mykola Kuzmenko, Chairman of the Supervisory Board of Zaliv, said: "We are delighted to be joining forces with Bergen Group which provides Zaliv with an exciting opportunity to expand its market reach. Together, the new company will become a significant and competitive player within various segments of the shipbuilding market."
    Completion of the transaction is contingent upon agreement from third parties, anti-trust approvals and other customary closing conditions. Completion is expected to take place before year end 2013.

    On completion of the transaction the two shareholders will contribute in aggregate NKr 50 million in working capital to the new company ensuring a sound capital base for further expansion. A hull construction financing facility of up to US$40 million has been provided for the company.
    Fearnley Securities has acted as financial advisor for Bergen Group in the transaction.


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