Talk of a POSH-MEO merger as M&A activity picks up in OSV sector

Singapore

FOUR years into a prolonged industry downturn, merger and acquisition (M&A) activity appears to be picking up in the offshore support vessel (OSV) market, lifting expectations that a sector-wide consolidation could gain momentum in the months to come.

In Singapore, Robert Kuok-backed PACC Offshore Services Holdings (POSH) has emerged as a potential white knight for private-owned Miclyn Express Offshore (MEO), which is said to be seeking as much as US$100 million of fresh equity as part of an out-of-court debt revamp exercise. Sources qualified, however, that any marriage between these two players is still a long way off.