Three of Norway’s biggest offshore supply vessel (OSV) operators are to merge and create one of the biggest fleets in the sector.
Solstad Offshore, Farstad Shipping and Deep Sea Supply are to join forces to create a “world leading” OSV company to serve the global oil and gas industry.
As part of the restructuring of the firms Farstad Shipping’s senior lenders, bondholders and F-Shiplease AS – a subsidiary of Ocean Yield ASA – will complete a debt to equity conversion and additional share issue.
CEO of Farstad Shipping, Karl Johan Bakken, said: “With this solution, we provide Farstad, Solstad and Deep Sea Supply with an industrial platform to sustain the current downturn in the OSV market and be well positioned to exploit a market recovery.
“We are pleased to have reached an agreement with our banks, bondholders and other stakeholders.”
The merger will create one of the biggest fleets operating in the high end offshore sector, with 154 vessels.
Following a successful completion of the merger, it is proposed that Solstad Offshore will be the parent company in the consolidated group, and will have support of two of the strongest participants in the shipping and offshore sector through Hemen and Aker.
The new consolidated group, Solstad Farstad, will build on the strengths of the original three companies.
Lars Peder Solstad will be proposed as the Chief Executive Officer of the combined company, which will be headquartered out of Skudeneshavn, Norway.
As part of the deal, Farstad’s banks, bondholders and other creditors have agreed to convert billions of crowns owed into shares.
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