North Energy takes 30 per cent of Reach SubseaCompany News // January 16, 2017
North Energy Capital (NEC), a subsidiary of North Energy is to become the major shareholder in Reach Subsea in Norway through a series of transactions that will see it take a controlling stake of approximately 30 per cent.
NEC has reached an agreement with certain shareholders of Accello Partners I AS, the current 30 per cent shareholder of Reach, to acquire their shares and shareholder loans. The purchase consideration will be settled with 10.8 million Reach shares valued at NKr1.75 (US$0.20).
Simultaneously, NEC/Accello has subscribed for 14.3 million shares at NKr1.75 per share in Reach's contemplated private placement. A condition for the completion of the Accello acquisition is the successful completion of the private placement. The management team of North Advisors, who are also shareholders of Accello, will not sell its shares and shareholder loans to NEC.
Post-completion of the Accello acquisition and Reach private placement, selling shareholders of Accello will be direct shareholders of Reach, while Accello will own approximately 30 per cent of Reach.
North Energy’s chief executive officer Knut Sæberg said: “This investment is in line with the new strategy adopted at last year's EGM, which was to focus on strategic opportunities where substantial influence and control can be exercised in other energy related businesses. Reach is a company we know well, with a strong management team and a flexible and scalable business model. As a new major shareholder, we look forward to working closely with and supporting the board and management in pursuing value creative opportunities at the bottom of the cycle.”