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Sembcorp Marine raises stake in Norway firm to 56%
SEMBCORP Marine has raised its stake in Norway-based Gravifloat AS by another 44 per cent for US$38 million, bringing its stake in the firm to a controlling interest of 56 per cent in order to expand into offshore gas processing units.
Under an agreement, the company will eventually up its interest in Gravifloat to 100 per cent by picking up an additional 44 per cent stake at the same price, said the company in an announcement to the Singapore Exchange.
"Our increased stake in Gravifloat reflects our strategy to broaden and deepen the group's range of proprietary designs and solutions to develop new state-of-the-art facilities for the fast-evolving LNG (liquefied natural gas) and LPG (liquefied petroleum gas) industries," said Sembcorp Marine president and chief executive Wong Weng Sun.
Sembcorp Marine first announced its 12 per cent acquisition in Gravifloat in June 2014.
The purchase price took into consideration the net tangible asset value of US$475,000 of the sale shares as at end 2015, intellectual property rights and the prospects of commercialising the design and the group gaining control of Gravifloat with the acquisition.
Gravifloat designs and holds patents for redeployable modularised LNG and LPG solutions.
Sembcorp Marine shares rose 6.5 Singapore cents or 3.9 per cent to S$1.745 on Wednesday.