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Renaissance sells Topaz to DP World in $1.079bn deal

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Renaissance Services SAOG, a leading international facilities management and service solutions company listed on the Muscat Securities Market (MSM), announced yesterday that it has struck a deal worth $1.079 billion with DP World, the UAE-based global port operator, covering the sale of Topaz Energy and Marine Limited, a majority-owned offshore supply vessel company.


The announcement, which came in a filing to the Capital Market Authority (CMA), stated thus: “The Board of Directors of Renaissance Services SAOG (Renaissance) have received and accepted a final binding offer from DP World amounting to RO 415m ($1.079 billion) enterprise value for acquiring 100 per cent shares in Topaz Energy and Marine Limited, Bermuda (Topaz). 86.5 per cent Topaz shares are held by Renaissance through its ownership of Topaz JAFZA. The balance 13.5 per cent shares of Topaz are owned by Standard Chartered Private Equity /Affirma Capital (SCPEL).”


Under the terms of the proposed transaction, Renaissance will also receive a settlement from Topaz of an outstanding RO 30.2 million ($78.6 million) shareholder loan. DP World’s final binding offer is subject to regulatory consents and approvals, including Renaissance shareholder approval, it noted.


Dubai-headquartered DP World oversees a global supply chain that includes businesses from marine and inland terminals, maritime services, logistics and ancillary services to technology-driven trade solutions. The company has a portfolio of 78 operating marine and inland terminals supported by over 50 related businesses in over 40 countries across six continents. In 2017, DP World handled 70.1 million TEU (twenty-foot equivalent units) across its portfolio.


Renaissance acquired Topaz in 2005 when it was a single-region operator and extended operations to the Caspian by acquisition of BUE Marine Services. Topaz has since expanded and consolidated its footprint in the Caspian Sea, grown organically and through M&A in the Middle East, and developed operations into West Africa and the subsea segment. The company today operates a modern and versatile fleet of 117 vessels globally with a strong presence in the Caspian Sea, MENA, and West Africa regions, with long-standing trusted relationships with many of the leading international and national oil companies, including BP, Tengizchevroil, Chevron, ExxonMobil, Dubai Petroleum, Saudi Aramco and Dragon Oil.


Topaz employs over 2,500 people and reported consolidated Fiscal Year 2018 revenues of $349 million. Topaz’s focus on securing long term contracts in strategic markets has resulted in a more resilient performance compared with competitors and allowed it to successfully navigate the turbulence of the global oil and gas industry.


Samir J Fancy, Chairman, Renaissance, said: “We are happy with the outcome for Topaz — we acquired a small regional OSV player almost 15 years ago and transformed it into a global leader with a unique market positioning and reputation. Thanks to a prudent and considered business model focused on excellence of service, long term strategic customer relationships and contracts we have been able to successfully navigate one of the toughest crises in the oil industry. This transaction fits our announced strategic intentions and sets a solid platform for growth in our Services Solutions and Facilities Management businesses, which are less capital intensive, and offer significant opportunity to build scale and value.”


Topaz CEO, René Kofod-Olsen, stated: “This is an excellent deal for our employees and customers. Being part of a world leading group such as DP World, ensures that we will continue to be an employer of choice for talented individuals and will bring greater strength and benefits to our customers.”


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