Solstad Offshore (SOFF) and Rem Offshore (REM) have agreed to merge REM with a wholly-owned subsidiary of Solstad.
The merger will be completed as a statutory triangular merger pursuant to and in accordance with Norwegian law.
REM and Solstad combined will operate a total of 62 vessels. After the merger, Solstad will retain its Skudeneshavn head office, from which the combined fleet of CSV vessels will be operated.
The combined fleet of PSV vessels will be operated from the current REM head office in Fosnavåg.
“The offshore service vessel (OSV) industry is undergoing a period of great uncertainty,” says Lars Peder Solstad, CEO of Solstad. “Reduced spending across the upstream value chain has contributed to the current overcapacity, adversely impacting dayrates and utilization. The OSV industry’s fragmented structure is further compounding these negative effects. Solstad and REM both see the need to create larger entities with financial and operational strength to weather the downturn. The combination of Solstad and REM is one step in the right direction,
but there remains a strong rationale for further consolidation.”
“On a standalone basis, both REM and Solstad have strong operational capabilities, high-in-demand specialist expertise, and an employee and management base that cultivates innovative business developments,” REM CEO Arild Myrvoll said. “From a commercial perspective, the Merger will further strengthen these pillars of productivity and profitability, while at the same time improving margins and reducing downtime through inherent cost and operational synergies.”
“I am satisfied that the merged company will allocate substantial activities to Fosnavåg, with potential for substantial increase, which will contribute to securing development possibilities for the region and stable employment opportunities for our nearly 500 highly qualified employees,” says REM chairman Åge Remøy.
REM is undergoing an overall restructuring to strengthen its balance and liquidity position. SOFF is also going through a comprehensive refinancing plan.