Business
EMGS: Establishes new business platform within Subsea Construction through vessel acquisition – no equity required
Electromagnetic Geoservices ASA ("EMGS" or the "Company") is pleased to announce a significant step in the Company’s strategic development through the establishment of a new business platform within the offshore subsea construction market. EMGS has entered into a set of agreements for a transaction (the “Transaction”) whereby a newly formed subsidiary of the Company will acquire the OSCV Siem Day (the “Vessel”) from Siem Day II AS (the “Seller”). The Siem Day, built in 2013 by Vard, Brattvåg, is
About this update from Electromagnetic Geoservices Asa
[{"type":"image","alt":"EMGS","displaySize":"","headline":null,"caption":"EMGS","className":"","disableSlideshowImg":false,"size":{"original":{"width":210,"height":50,"url":"https://media.zenfs.com/en/globenewswire.com/7bd2a6a51ab53915104eb2861c1b0e0e"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/M_.T9_ApYmNAifyD4Lh.xQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTQyMDtoPTEwMDtjZj13ZWJw/https://media.zenfs.com/en/globenewswire.com/7bd2a6a51ab53915104eb2861c1b0e0e","width":210,"height":50}},"lazy":false},{"type":"text","content":"Electromagnetic Geoservices ASA ("EMGS" or the "Company") is pleased to announce a significant step in the Company’s strategic development through the establishment of a new business platform within the offshore subsea construction market. EMGS has entered into a set of agreements for a transaction (the “Transaction”) whereby a newly formed subsidiary of the Company will acquire the OSCV Siem Day (the “Vessel”) from Siem Day II AS (the “Seller”).","length":470,"tagName":"p"},{"type":"text","content":"The Siem Day, built in 2013 by Vard, Brattvåg, is a subsea construction vessel of the design type OSCV 11L.","length":107,"tagName":"p"},{"type":"text","content":"The acquisition represents a strategic diversification for EMGS, complementing the Company’s existing electromagnetic ("EM") operations and expanding into the growing subsea construction segment. Importantly, this diversification aims to enhance the combined Company’s resilience and long-term value potential.","length":320,"tagName":"p"},{"type":"text","content":"Transaction Structure and Financing","length":35,"tagName":"p"},{"type":"text","content":"Under the Transaction, EMGS will enter into a five-year bareboat charter agreement with the Seller at a rate of USD 42,000 per day until 31 December 2025, increasing to USD 45,000 per day thereafter. The charter includes purchase options exercisable at the third and fourth anniversaries of the charter commencement, as well as an unconditional purchase obligation at the end of the charter period. The total acquisition price of USD 108.90 million is structured to minimize upfront cash outlay, with an initial payment of USD 10.89 million due at charter commencement, and the remaining balance gradually offset against charter payments, culminating in a final payment at the time of purchase.","length":694,"tagName...