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Sembcorp Marine raises purchase price for Sevan Marine's intellectual property rights

SEMBCORP Marine (SembMarine) is upping the purchase price for the acquisition of the intellectual property rights of Oslo-listed Sevan Marine ASA to US$39 million from US$28 million.

This comes after further negotiations with several of Sevan Marine shareholders, it said in a filing with the Singapore Exchange on Friday. 

On June 8, it announced that its wholly owned subsidiary, Sembcorp Marine Integrated Yard (SMIY), was entering into a  sale and purchase agreement with Sevan Marine to acquire its interests and title to all its intellectual property; a 95 per cent stake in HiLoad LNG AS, which is a Sevan Marine subsidiary holding certain intellectual property rights; the takeover of all operating and associated costs in maintaining Sevan Marine's three office locations; and the transfer of 26 Sevan Marine employees.

SembMarine will fund the revised amount through a combination of internal funds and bank financing, it said.

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As part of the revised deal, Sevan Marine will not have a right to terminate the transaction in favour of any alternative offer.

Sevan Marine specialises in the design, engineering and project execution of floating units for offshore applications. Their main product is a cylindrical platform used for floating production and drilling. 

In the June announcement, SembMarine highlighted that through the acquisition, it will be well placed with a suite of intellectual properties and knowledge to execute leading-edge design and engineering solutions for the global offshore and marine sectors.