Fairmount Heavy Transport secures funds for conversionsNews // August 19, 2005
Fairmount Heavy Transport has confirmed the closing of its US$50 million private placement which has provided new equity for the acquisition and conversion of the semi-submersible barges BOA 19 and 20 (currently owned by from Boa Offshore AS in Trondheim, Norway).
The barges will be converted into self propelled heavy transportation vessels, and should be completed in the second half of 2006.
Fairmount Heavy Transport NV was recently established by Fairmount Marine BV, Capricorn Offshore AS and Sea of Solutions BV to focus on the marine heavy lift/transportation market, the main market segments in question being transportation of jack-ups, semi submersible drilling rigs, and floating production units for the offshore oil and gas industry.
The private placement was carried out by issuing 28.2 million new shares. Following the private placement, the total number of outstanding shares in Fairmount Heavy Transport NV is 30 million.
Through the private placement - which was oversubscribed several times - a number of Norwegian and international institutional investors have invested in the company, alongside with private professional investors.
Fairmount Heavy Transport NV was due to start trading on the Norwegian OTC system under the ticker FAIR at the beginning of the month.
Fairmount Marine will act as technical and operational manager for the converted vessels, with Capricorn Offshore providing management and marketing.
The board of directors of Fairmount Heavy Transport will be chaired by Henk van den Berg, the sole owner of Fairmount Marine BV, and Frederik Steenbuch, owner of Capricorn Offshore, who will hold the position of the CEO.
NB: Fairmount has recently announced that it has taken delivery of both barges, which will be renamed Fairmount Fjord and Fairmount Fjell.