Bergen Group sells its majority stake in shipbuilding division to Zaliv Shipyard
Bergen Group ASA on Friday entered into a Share Purchase Agreement for the group's Shipbuilding Division with JSV Zaliv Shipyard, Ukraine ("Zaliv"), one of the leading hull construction shipyards in Central and Eastern Europe, the Group said in a statement.
For a purchase price of USD 18.2 million, Zaliv will acquire 51% of the shares in a newly incorporated company which will own all of Bergen Group's shipbuilding assets, other than existing projects, which will remain with Bergen Group.
The new Company will strengthen its international market position based on an improved financial platform, stronger product portfolio, complementary knowledge and increased capacity throughout the entire production process.
Completion of the transaction is contingent upon i.a. different consensus from third parties, anti-trust approvals and other customary closing conditions. Completion is expected to take place before year end 2013. On completion of the transaction the two shareholders will contribute in aggregate NOK 50 million in working capital to the new Company ensuring a sound capital base for further expansion. Furthermore a hull construction financing facility of up to USD 40 million, available as from today, has been provided by for the company.
Fearnley Securities has acted as financial advisor for Bergen Group in the transaction.
The Zaliv Shipyard Zaliv was established in 1938 and turned into one of the leading shipyards in Central and Eastern Europe. It is situated on the shore of the Kerch Strait, between the Black Sea and the Sea of Azov in Ukraine. Zaliv has its own design bureau - Zaliv Ship Designer. The modern shipyard specializes in commercial shipbuilding, building of vessels for the oil and gas industry, manufacturing of offshore structures and products of ship machine building.
Zaliv is ultimately owned by Kostyantin Zhevago, who has an expansive interest in a number of global businesses. The largest of which is iron ore mining group, Ferrexpo which is listed on the London Stock Exchange and has total assets of approximately US$2.8 billion.
Bergen Group is an innovative supplier of products, services and solutions to the offshore and maritime industry. The Group has 1.000 skilled and motivated employees, working in well-established companies strategically located along the coast of Norway. The operational activity is organized within three different divisions; Offshore, Shipbuilding and Services.
