07 June 2005
Muscat - Oman's Renaissance Services yesterday said it will acquire the UK's BUE Marine, one of the largest ship owners and marine services groups in Europe, providing support to the offshore oil and gas industries worldwide.
Renaissance Chief Executive Stephen Rowland Thomas told Times Business that the deal was at an advanced stage, and expected within the next few weeks. The transaction will take place through Renaissance's 100 per cent subsidiary Topaz Energy and Marine Dubai (Topaz). The acquisition will create one of the top ten offshore vessel operators worldwide.
"Post-acquisition, the combined marine business of BUE and Topaz will rank amongst the top 10 offshore support vessel operators in the world with a geographical footprint in the Caspian, southeast Asia, the Middle East, and West Africa," Stephen said.
BUE, which is headquartered in the UK, currently operates primarily in the Caspian region. Established in 1991, BUE has historically provided and managed marine support vessels for the offshore oil and gas sector in the North Sea and the Caspian. In recent years, BUE has invested heavily and now operates a diversified fleet of 42 vessels comprising supply vessels, anchor-handling tugs, accommodation vessels, icebreakers, work barges, and utility boats.
As part of its ambitious fleet expansion programme, BUE has another 19 vessels and barges under construction in shipyards with further orders to follow. The enterprise value of the company including the current new build programme underway is in the region of $150 million.
Topaz is also in the offshore support vessel business and operates in the Middle East, southeast Asia, and West Africa. The BUE and Topaz customer base comprises almost all the leading international oil and gas companies such as Shell, BP, Total, Statoil, Agip, etc. with both companies having established a reputation as quality fleet operators.
The BUE group employs over 600 people. Key senior executives including the BUE CEO will continue with the enlarged group. The headquarters of the combined Topaz and BUE business will be based in Dubai, given its logistical advantages and proximity to major offshore markets.
Renaissance acquired Topaz earlier this year to create one of the largest services company in Oman with a diverse group of businesses. Based on the audited results, the combined turnover of the two companies for the year ended December 2004 was over $225 million with net profit in excess of $40 million.
A key driver for the merger was to create a company, which would be able to grow rapidly in its principal businesses through acquisitions. BUE fits in with this plan and will contribute approximately another $100 million of annual turnover to the group with commensurate profitability. From a strategic viewpoint, BUE is operating in a market that does not overlap with the current operations of Topaz, with substantial potential for further growth in this region for other businesses within the Renaissance Group. Leading local and international banks will support this transaction.
Today, BUE has offices in Edinburgh, London, Baku, Ashkabad, Atyrau, Aktau, Bautino and Larnaca. Renaissance share yesterday gained 5.36 per cent on the Muscat Securities Market. The scrip closed at RO6.680 after touching a high of RO6.900.
Muscat - Oman's Renaissance Services yesterday said it will acquire the UK's BUE Marine, one of the largest ship owners and marine services groups in Europe, providing support to the offshore oil and gas industries worldwide.
Renaissance Chief Executive Stephen Rowland Thomas told Times Business that the deal was at an advanced stage, and expected within the next few weeks. The transaction will take place through Renaissance's 100 per cent subsidiary Topaz Energy and Marine Dubai (Topaz). The acquisition will create one of the top ten offshore vessel operators worldwide.
"Post-acquisition, the combined marine business of BUE and Topaz will rank amongst the top 10 offshore support vessel operators in the world with a geographical footprint in the Caspian, southeast Asia, the Middle East, and West Africa," Stephen said.
BUE, which is headquartered in the UK, currently operates primarily in the Caspian region. Established in 1991, BUE has historically provided and managed marine support vessels for the offshore oil and gas sector in the North Sea and the Caspian. In recent years, BUE has invested heavily and now operates a diversified fleet of 42 vessels comprising supply vessels, anchor-handling tugs, accommodation vessels, icebreakers, work barges, and utility boats.
As part of its ambitious fleet expansion programme, BUE has another 19 vessels and barges under construction in shipyards with further orders to follow. The enterprise value of the company including the current new build programme underway is in the region of $150 million.
Topaz is also in the offshore support vessel business and operates in the Middle East, southeast Asia, and West Africa. The BUE and Topaz customer base comprises almost all the leading international oil and gas companies such as Shell, BP, Total, Statoil, Agip, etc. with both companies having established a reputation as quality fleet operators.
The BUE group employs over 600 people. Key senior executives including the BUE CEO will continue with the enlarged group. The headquarters of the combined Topaz and BUE business will be based in Dubai, given its logistical advantages and proximity to major offshore markets.
Renaissance acquired Topaz earlier this year to create one of the largest services company in Oman with a diverse group of businesses. Based on the audited results, the combined turnover of the two companies for the year ended December 2004 was over $225 million with net profit in excess of $40 million.
A key driver for the merger was to create a company, which would be able to grow rapidly in its principal businesses through acquisitions. BUE fits in with this plan and will contribute approximately another $100 million of annual turnover to the group with commensurate profitability. From a strategic viewpoint, BUE is operating in a market that does not overlap with the current operations of Topaz, with substantial potential for further growth in this region for other businesses within the Renaissance Group. Leading local and international banks will support this transaction.
Today, BUE has offices in Edinburgh, London, Baku, Ashkabad, Atyrau, Aktau, Bautino and Larnaca. Renaissance share yesterday gained 5.36 per cent on the Muscat Securities Market. The scrip closed at RO6.680 after touching a high of RO6.900.
© Times of Oman 2005
