|STX to sell subsidiary, Fincantieri lead bidder|
|Tuesday, 24 April 2012 11:59|
South Korean shipbuilding group STX plans to sell its subsidiary STX OSV by the end of April, with Government-owned Italian firm Fincantieri believed to be the leading bidder.
STX OSV is a shipbuilding subsidiary that is listed on the Singapore stock exchange and specialises in offshore vessel construction.
Fincantieri has a sound record in the offshore sector, but recently has not won any significant orders or secured any contracts. This is reportedly the motivation behind Fincantieri's bid, with Fincantieri management deciding to strengthen the group's competitiveness in the industry by acquiring the world’s biggest builder of offshore support vessels.
STX OSV has nine shipbuilding yards, located in: Norway, Romania, Vietnam and Brazil.
Brazil is a particularly important market, with STX OSV constructing a second yard in the South American nation in anticipation of Petroleo Brasileiro drilling new wells off the country’s coastline. It is believed Fincantieri sees the Brazil region as a key area for market expansion and growth.
STX OSV ended the 2011 financial year with a profit of $280 million. Despite these good results, STX is being forced to sell STX OSV regardless, to assuage its own very high debt levels.
An investment fund is believed to have also submitted an offer, though it is reportedly not as good as Fincantieri’s.
A deal is expected to be reached in a few weeks.
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