June 05, 2019

Singapore’s Keppel Corp associate company Floatel International is merging with Oslo-listed Prosafe to create the world’s largest offshore accommodation company.
Prosafe said that the aim is to combine forces in a challenging and changing market.
• A merger is necessary to adapt to a changing market
• Creates the largest and most versatile fleet in the global accommodation space
• Strengthens the Company’s global reach and customer offerings
• Total fleet of 16 semis – of which 12 are modern harsh environment semis
• Combined firm order backlog of $225m from Q1 2019 and onwards. In addition Prosafe and Floatel have recently added respectively USD 80m and USD 22m to the order backlog
• The combined entity is anticipated to realize significant cost and efficiency synergies
• Existing financing structure unchanged with limited fixed amortizations until 2023
• Combined company better equipped to operate in the global market and with improved customer offering
The combined company’s largest shareholders will be Keppel (c.22%), funds managed by Oaktree Capital Management, L.P. (c.19%) and HitecVision funds (c.16%) on a fully diluted basis. The name of the company will be Prosafe SE.
Floatel operates operates a fleet of five modern semi-submersible accommodation units. Following the merger Prosafe SE will operate a combined fleet of 12 units that includes two newbuilds.
In May, Prosafe announced a three-year contract signed with Petrobras for Safe Eurus in Brazil. The contract will commence during Q4 2019. The total value of the contract is approximately USD 80m. In April, Floatel was awarded a four month extension for Floatel Superior working for Equinor on the Martin Linge field. The total value of the contract is extension is approximately USD 22m.
(Source: Prosafe/The Business Times – Image: Floatel Reliance near Sumburgh, Shetlands/Ronnie Robertson)