Fisher (James) & Sons PLC
17 July 2000
James Fisher to invest £40 million
in two new Cable Laying Ships
Leading specialist shipping group James Fisher and Sons
Public Limited Company ('James Fisher') is set to increase
its presence in the growing cable laying market with the
purchase of two ships currently undergoing conversion work
at the Rijeka yard of Croatian shipbuilders Viktor Lenac.
The total cost of each vessel, including the purchase
consideration and conversion costs, will be approximately
£20m.
On completion, which is expected to be mid-October 2000
for one ship and end December 2000 for the other, the
vessels will be chartered to it-International Telecom USA,
a subsidiary of General Dynamics Advanced Technology
Systems, a US company whose activities include the laying
of telecommunications cable.
As part of its specialist shipping activities, James
Fisher, a leader in the ownership and management of small
to medium sized clean product tankers in the UK and
Europe, already operates a highly successful cable laying
ship, the 'Nexus', currently on time charter with Global
Marine Systems Limited. James Fisher sourced, purchased,
designed and supervised the conversion of the Nexus in
1993. The ship has consistently performed technically
above specification, has been under regular charter since
conversion and makes a significant contribution to group
profits.
Commenting, David B. Cobb, Chairman of James Fisher, said:
'We are delighted to be increasing our involvement in this
growing sector of the market and in particular to be
forming a strong partnership with it-International Telecom
USA.
'Worldwide cable laying activity is expected to remain
high, driven by the growing use of fibre optic
telecommunication cable. The new vessels, Oceanic
Princess with 5,000 tonnes of cable capacity and the
Oceanic Pearl with 3,000 tonnes, effectively will double
our participation in this market and provide a significant
contribution to group profitability going forward.'
Don Dean, President of it-International Telecom USA, said:
'We are expanding our cable laying activities in
international waters and chose James Fisher as a partner
because we were well aware of its expertise in the
ownership and management of ships for a variety of
specialist purposes. We look forward to a long and happy
association with the company.'
The consideration for the purchase and conversion of the
two vessels will be financed from James Fisher's existing
cash resources and from a new loan facility, secured
principally by mortgages on the vessels. Each vessel will
be the subject of a firm five year time charter, with
further options to extend on the charterer's behalf.
After operating and financing costs and depreciation, the
two vessels being acquired are expected to contribute
significantly to group profitability.
Current Trading and Prospects
In a letter to shareholders setting out the terms of the
purchase, Mr Cobb says:.
'Overall, current trading is in line with expectations,
with the group's ships working satisfactorily. The
directors are confident about the prospects for the
group.'
The board expects to announce the interim results for the
group for the six months ended 30 June 2000 in September
2000.
A circular has been despatched to James Fisher's
shareholders containing details of the proposed investment
and calling a meeting of the Company on Monday 31 July to
approve it.
Press Enquiries:
David B. Cobb CBE
James Fisher and Sons Public Limited Company
Tel: 020 7338 5808
Brad Waters
Vice President
Finance & Information Systems
General Dynamics Advanced Technology Systems
Tel: 00 1 336 698-8930
Fax: 00 1 336 698-8962
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