BW Acquires Prosafe Shares

BW Offshore said that it has acquired more than 5 percent of the share capital in Prosafe ASA, resulting in a combined holding by the BW group entities of 22.6% of the shares and votes in Prosafe. Prosafe operates in the market for floating production, storage, and offloading units (FPSOs) and accommodation rigs.

To finance the share purchase at NOK 86.0 per Prosafe share, BW Offshore will conduct a placing of new shares in BW Offshore at a price per share of NOK 26.0. BW Offshore has previously declared its interest in being an active participant in consolidation in the FPSO industry. FPSOs (Floating Production Storage and Offloading units) are a key component in the energy supply chain. With the trend towards producing oil and gas in deeper waters offshore, this sector is experiencing rapid and strong growth.

BW Offshore believes that a transaction with Prosafe would create a major FPSO player with the largest geographical footprint in the industry and well positioned to take advantage of growth opportunities.