Sical to buy Singapore firm

Sical Logistics announced that it would acquire Singapore-based Bergen Offshore Logistics Pte Ltd, a provider of specialised logistics for offshore oil and gas exploration, for a consideration of $96.9 million. The move is being seen as the company's first step towards a global footprint in offshore logistics.

Under the terms of the share purchase agreement between Sical Logistics and Bergen Offshore, the former would pay an all-inclusive consideration of $96.9 million towards acquiring 100 per cent equity in Bergen as well as three anchor-handling tugs and one platform-supply vessel, said a statement released by Sical.

The acquisition would be funded through the company's recent $16.9 million FCCB offering and a structured loan of $80 million from NIBC Bank, Singapore, it added.

Ashwin Muthiah, vice-chairman, Sical Logistics, said, in a statement, the acquisition signalled Sical's commitment to offshore logistics as a key focus.

"In the face of the continuing high demand for energy, globally, the offshore energy exploration space has become very active, and this has created huge demand for new generation, deep water support vessels. We see a favourable demand-supply mismatch over a few years," he said.

Sical's existing offshore logistics business operates and manages 17 offshore supply vessels for Oil and Natural Gas Corporation (ONGC). With the acquisition, the company will be targeting global offshore energy service providers.

"Customer acquisition will not be an issue as we have demonstrated out expertise in offshore logistics by successfully working with ONGC for a few years," Muthiah said.

Sical expects the acquisition to contribute about $27 million revenue to the company's kitty in the first full year of operations.