Fugro to sell its stake in Global Marine

by James Bernthal-Hooker in Corporate Vessels 31/01/2020 Fugro

Dutch outfit Fugro has announced plans to divest its stake in the UK based firm Global Marine. Fugro currently holds a 23.6% equity interest in Global Marine, which it plans to sell, along with the remainder of its non-core interests in the firm.

A subsidiary of Global Marine Holdings has entered into a definitive agreement to sell 100% of Global Marine Group (GMC), excluding GMG’s 49% joint venture with Huawei Marine Networks (HMN), to an investment affiliate of JF Lehman & Company for a total base consideration for 100% of GMG of approximately $250 million (€225 million).

After repayment of pension and debt obligations (approximately $97 million) and other customary closing adjustments, taxes, and transaction fees, Fugro’s share in this transaction is expected to be around $40 million. The transaction is expected to be complete in the next few months.

Mark Heine, CEO of Fugro, said: “I am very pleased with this transaction, which has been very professionally led by the GMG management. It is an important step towards monetising our non-core activities. This divestment will enable us to focus further on our core business and deliver on our Path to Profitable Growth strategy.”

Fugro’s share of the net proceeds from the divestment of its stake in GMG and HMN is approximately $73 million, which it expects to use to reduce outstanding debt.

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