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Hyundai Heavy Industries, Close To Take Over of Daewoo Shipbuilding

Hyundai Heavy Industries (HHI) Group has signed a definitive agreement with state owned Korea Development Bank (KDB) to acquire Daewoo Shipbuilding & Marine Engineering (DSME).

HHI is the world’s largest shipbuilding company. Its headquarters are in Ulsan, South Korea. HHI was founded in 1972 by Chung Ju-yung as a division of the Hyundai Group, and in 1974, completed building its first ships

The definitive agreement builds on the heads of agreement (HoA) that was signed between HHI and KDB on 31 January this year. It will see KDB will make a contribution-in-kind to Korea Shipbuilding & Offshore Engineering (KSOE, named tentatively), to be established as a sub-holding company spun off from HHI to control the group’s shipbuilding companies including HHI, by transferring its shares in DSME in return for an equity stake in KSOE.

The definitive agreement states, amongst other things, that HHI and KDB will perform due diligence of DSME and HHI, respectively; the two parties will exercise their best efforts to complete the transaction unless the due diligence reveals a fact or matter that would have a material adverse effect on either of the target companies; and the parties will commit no unlawful act that would adversely affect the standalone business operations of HHI and DSME until the acquisition is officially authorised by the government authorities, According to the statement,.

HHI and KDB also pledge to guarantee employment security of DSME workers and continued relationships with DSME’s current business partners. The two parties are entering into this agreement “with an ultimate aim of stimulating employment and revitalising the local economy”, they jointly state, promising to maintain the current management structure of DSME, keep employment of DSME’s workers secure and continue the business relationships with the existing subcontractors and suppliers of DSME.

“HHI Group’s post-acquisition strategy is, to have its four shipyards, which would now include DSME as the latest addition to the group’s portfolio of shipbuilding business, focused on design, manufacturing and sales activities, which will be controlled by KSOE specialised in R&D and engineering, with a view to taking HHI Group’s competitiveness to the next level,” declared Kwon Oh-gap, Vice Chairman and CEO of HHI Holdings,

 


South Africa About To Get its First Offshore Oil and Gas Services Base

Odion Max John, in Cape Town

South Africa’s National Ports Authority (TNPA) has selected a private port terminal operator to build and operate the country’s first offshore supply base (OSSB) at the Port of Saldanha, in the Western Cape.

SA’s first dedicated and customised facility supporting offshore oil and gas is to be developed by Saldehco, a South African company comprising principal shareholder HARPS Holdings Pte Limited and local partner Semona Pty Limited.

The facility, which will involve investments of some $150Million over the coming five years, will provide services to offshore oil and gas companies operating along Africa’s coastline.

Saldehco was selected following a competitive bidding process conducted by the Transnet National Ports Authority (TNPA), which is mandated to concession port terminals to private operators in line with Section 56 of the National Ports Act.
Its two partners- HARPS- has energy, property and marine interests in several countries, and -Semona Pty- is black-women-owned energy company.

As port landlord and planner, TNPA is providing berth infrastructure for the OSSB at the port’s general maintenance quay. Saldehco, meanwhile, is responsible for providing warehousing, workshops, office facilities, as well as equipment such as cranes and other rubber-tyred equipment to operate the terminal.

The OSSB will offer services to vessels supporting offshore exploration and production activities, including fabrication of offshore structures, as well as provision of marine bunkers and lubricants.

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