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    GED refocuses on subsea market - acquires 11 vessels

    Company News // January 18, 2017

    AIM-listed Global Energy Development (GED) plc has unveiled plans to acquire 11 subsea vessels and a barge vessel as it seeks to adapt its business strategy, focusing in future on the oilfield services sector.

    GED has entered into two share purchase agreements to acquire 11 vessels, a barge and related equipment through the purchase of 100 per cent of the issued shares in vessel-owning companies. All of the vessels are currently located in Louisiana in the US, with direct access to the offshore oil and gas fields in the Gulf of Mexico.

    The acquisitions mark a fundamental change in the company’s business strategy and its first in the subsea industry. The company says it is seeking to make counter-cyclical investments in the subsea industry that will enable it to capitalise on the recovery in the oil price and increased demand for offshore support services.

    In order to conclude the deal, GED is to issues notes for a near-term cash injection of US$10.5 million, resulting in a strengthened balance sheet. The company also plans to change its name to Nautilus Marine Services plc, to reflect new business strategy. The transactions represent a reverse takeover that will be subject to a vote of the company’s shareholders.

    It plans to acquire three vessels from Everest Hill Group Inc through the purchase of all of the issued shares in three vessel-owning companies. It also has a conditional agreement to receive US$10.5 million in new cash proceeds to acquire eight vessels by acquiring the shares in two vessel-owning companies from McLarty Capital Partners, Caleura Limited and Alan Quasha.

    Chairman of the company Mikel Faulkner said: “We are very pleased to have committed to these acquisitions of the offshore service vessels in the Gulf of Mexico. This represents the company’s first step towards delivering a new strategy of increasing shareholder value by targeting investment and acquisition opportunities in the subsea services sector with the potential for significant upside.”

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