PEs on the prowl for O&M bargains

Singapore

PRIVATE equity investors (PEs) have been fishing for opportunities in the beleaguered offshore and marine sector but the lack of functional benchmarks to bridge seller and buyer expectations on asset prices is likely to continue setting back deal-makers in the near future.

DVB Bank's managing director, Geir Sjurseth said PEs - typically looking at an investment time horizon of five to eight years - are interested in companies active in offshore sub-sectors that will first benefit from the next market upswing. They are also eyeing acquisition targets with the required scale and geographic diversification in operating footprint.

Industry watchers pointed out that activity is likely to first pick up in shallow-water before deep-water; consequently shallow-water rigs and vessels are expect…