Reach Subsea announces acquisition of iSurvey Group and strategic agreement with Wilhelmsen New Energy

Reference is made to today’s stock exchange releases from Reach Subsea ASA (“Reach Subsea”) where North Energy ASA (“North Energy”) is the largest shareholder with a 32% ownership interest.

Reach Subsea has signed an agreement with iSURVEY Holding AS to acquire iSURVEY Group AS (“iSURVEY”) a provider of offshore high-quality survey services, for NOK 135 million on a neutral working capital and debt basis. The acquisition will develop Reach Subsea into a larger, more robust, fully integrated company, with strengthened in-house data management and data processing capabilities.

In addition, Wilhelmsen New Energy AS (“Wilhelmsen”) has entered into an investment agreement with Reach Subsea (the “Agreement”) whereby Wilhelmsen has agreed to become a 21% shareholder in Reach through subscribing for NOK 150 million in a directed private placement at NOK 3.25 per share. Further, Wilhelmsen will receive warrants to subscribe for additional shares at NOK 4 per share with a duration of 3 years. If the warrants are fully exercised, it will give Wilhelmsen an ownership stake of 33%. 

The investment agreement forms part of a broader partnership, which will see the launch of the Reach Remote Unmanned Surface Vehicles (USVs).

After completing the equity issue and acquisition of iSURVEY, North Energy will hold an ownership interest of 20.5% in Reach Subsea. If Wilhelmsen fully exercises its warrants, North Energy will hold an ownership interest of around 17% in Reach Subsea.

“North Energy continues to support Reach Subsea through its role as a major shareholder. The financing of Reach Remote is a significant milestone for the company, and we believe Reach Subsea has strengthened its commercial offering after completing the recent acquisitions of Octio AS, MonViro AS and iSURVEY. Reach Subsea is now fully integrated company, with strong industrial partners, and ideally placed to take advantage of the significant market opportunities currently available. As an industrial investment company, our objective is to develop companies through active ownership and invest in both sustainable and profitable growth. Over the next few years, North Energy will continue to evolve, and our ambition is to further strengthen our portfolio of industrial holdings through strong partnerships and commercially attractive investment opportunities” said Anders Onarheim, Chairman of North Energy.

 

For further information:

Rachid Bendriss, Co-CEO

Email: rb@northenergy.no