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    Subsea 7 to acquire Seaway Heavy Lifting

    Company News // January 17, 2017

    Subsea 7 has confirmed that one of its wholly-owned subsidiaries has made an offer to acquire the 50 per cent shareholding in Seaway Heavy Lifting Holding Limited currently owned by K&S Baltic Offshore (Cyprus) Limited. The terms of the offer are binding on Subsea 7 until 1 July 2017. During this period the Works Council representing the employees of Seaway Heavy Lifting in the Netherlands will be consulted in compliance with Dutch law.

    Jean Cahuzac, CEO, said: "Subsea 7's strong market position in offshore energy services is complemented by Seaway Heavy Lifting's expertise in three areas of offshore activity: renewables, heavy lifting operations and decommissioning of oil and gas assets. We believe that this acquisition will allow us to strengthen Subsea 7's position in businesses where we expect increased activity and opportunities for long term growth.

    Seaway Heavy Lifting is a specialist offshore contractor and operates two heavy lift vessels. It employs approximately 550 employees and is headquartered in The Netherlands.

    Seaway Heavy Lifting is a joint venture in which Subsea 7 currently holds a 50 per cent interest. If the offer
    to acquire the remaining 50 per cent is accepted, Seaway Heavy Lifting would become a wholly owned subsidiary of
    Subsea 7.

    Subsea 7 is offering an initial consideration of US$279 million on completion and deferred consideration of up to US$40 million to be paid by the end of the first quarter 2021 on condition that certain performance targets are met. The considerations will be funded from Subsea 7's existing cash resources.

    As at 31 December 2015 Seaway Heavy Lifting had net assets of US$413 million, including net debt of US$4 million. 

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