Seatrium has divested its asset AmFELS Yard in Brownsville, Texas, for $65 million, executed through its subsidiary Seatrium AmFELS Inc.
The subsidiary has entered into a binding agreement with Karpower Valley, a related party of Karpowership for the asset sale. Karpowership is a Turkish builder, operator, and owner of a fleet of powerships.
Following the divestment, Seatrium will focus its presence in the US on engineering innovation and technology capabilities, through its technology centres and offices in Houston, Texas, and service centers in Vicksburg, Mississippi.
The consideration was arrived at after arm’s length negotiations with Karpowership and will be satisfied in cash, of which $50 million is deferred and to be paid one year after closing.
The book value of the divested assets as at June 30, sold on an “as is, where is” basis, is approximately $39 million. The completion of the divestment is subject to customary closing conditions, including the transfer of the lease to the new owner by the Port of Brownsville.
Seatrium says that the accretive divestment will allow it to enhance capital and operational efficiencies, while unlocking value from one of its surplus facilities.
Shares in Seatrium closed 9 cents higher or 3.846% up at $2.43 on Sept 23.
