Heavy lift merger in works

Source: Marine

Norway's Awilco Heavy Transport ASA says it has reached an agreement with Heavy Transport AS (controlled by Arne Blystad) to combine the ownership and operations of their heavy transportation activities.

AWHT has agreed to acquire the two sophisticated and highly capable heavy transportation vessels "ANCORA" and "HAWK" with 157 m cargo deck length and a 30,000t lifting capacity. Purchased on a 'ready-to-operate' basis, the expected delivery of ANCORA is July 2007 and the expected delivery of "HAWK" is scheduled for October 2007. The gross purchase price is USD 107 million per vessel.

As part of the settlement of the acquisition, AWHT will issue approx. 8.75 million new shares at NOK 36 per share (approx. USD 50 million) to Arne Blystad.

Furthermore, Awilco AS, the principal AWHT shareholder, has agreed to sell approx. 940,000 shares to Blystad at NOK 36 per share, giving Blystad a 25% holding in the expanded AWHT.

Blystad will be represented by o board member in the new AWHT board. Awilco AS will hold approx. 36% of the issued shares post transaction. The company intends to raise approx. USD 160 million of new debt to fully fund the acquisition.

As a result of the business combination, the board of directors of AWHT will propose changing the company's name to Ocean HeavyLift ASA. The company is currently preparing an application for listing ont he Oslo stock exchange.

After the transaction, Ocean HeavyLift ASA will own and operate four newly converted Heavy Transportation vessels, all in operation by the end of 2007. Further contracts for the combined fleet totaling $37 million have been awarded.