Hi Tocco
Seaspan and Swiber terminate $200m investment deal JANUARY 7TH, 2020
Wow.... they don't describe what caused the deal to fall through.... This is their standard purchase order
Seaspan Standard PO
They certainly cover themselves in the event the seller does not comply with the terms of the contract.
Swiber has been in heavy financial troubles for a couple of years and seemed to be desperate to pay off creditors... I wonder what was not delivered on time or what term was not performed properly
This announcement does appear to be harmful to the share price today.
Actually I was not too excited about this purchase anyway. Seaspan is a shipping company....why they wanted to get into LNG offshore development
Swiber Holdings Limited ("Swiber" and together with its subsidiaries, "the Group") is a world-class integrated offshore construction and support services provider for shallow water oil and gas field development.
The Group offers a wide range of Engineering, Procurement, Installation, and Construction ("EPIC") services, complemented by its in-house marine support and engineering capabilities, to support the offshore field development and production activities of its international clientele base across the Asia Pacific, Middle East, Latin America and West Africa regions.
Founded in 1996, Swiber is committed to building the Group into a leader in the offshore oil & gas industry. With its strong technical expertise and dedication to providing high quality services, the Group is highly regarded by established and reputable international oil majors and national oil companies worldwide for services that epitomise excellence, safety, innovation and value. This has enabled Swiber to garner strong support from clients, which is one of the driving forces fueling the Group's growth and success over the past 20 years.
At Swiber's helm is a strong and experienced corporate management team who is collectively responsible for strategic planning, operations and overall management of the Group. Backed by highly trained and experienced offshore EPIC engineers and offshore support crews, the management team ensures the successful execution of projects of varying scope and complexity, as well as timely delivery of services to clients. Typical marketing blarney.
If Swiber was a shipping company involved with the transportation of LNG, it would have been a great fit with Seaspan...but being involved in the design and construction and services to LNG drilling platforms seems to be a divergence to me...and an uneconomical one from all appearances.
No.... I personally view this as good news.
UE
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