RENAISSANCE SELLS TOPAZ TO DP WORLD IN $1.079 BN DEAL
The Board of Directors of Renaissance Services SAOG have received and accepted a final binding offer from DP World amounting to RO415 mn ($1.079 bn) enterprise value for acquiring 100 per cent shares in Topaz Energy and Marine Limited, Bermuda (Topaz).
86.5% Topaz shares are held by
Renaissance through its ownership of
Topaz JAFZA. The balance 13.5% shares of Topaz are owned by Standard Chartered Private Equity /Affirma Capital (SCPEL). Under the terms of the proposed transaction, Renaissance shall also receive a settlement from Topaz of an outstanding RO30.2 Million shareholder loan. DPWorld’s final binding offer is subject to regulatory consents and approvals, including Renaissance shareholder approval.
Renaissance acquired Topaz in 2005 when Topaz 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’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. Topaz employs over 2,500 people and reported consolidated FY2018 revenues of $349 Million.
Through this divestment, Renaissance and SCPEL are passing Topaz on to new ownership that has the synergies, capital strength and global reach to take the company forward to new heights. DP World can build on the solid platform of Topaz achievements to date, ensuring best practice safety, continuously improving standards, security, opportunity and growth in the interests of all stakeholders: employees, partners, clients and customers, bankers, bond holders, professional advisers and other service providers in the whole Topaz community, in its key markets around the world.
Renaissance has announced and pursued a liquidity event for Topaz over the past year, including the possibility of a sale of equity. This transaction fulfils a number of Renaissance objectives set out in that strategy: to de-risk the company; deleverage the balance sheet; meet pending capital obligations; and strengthen liquidity. The first priority shall be to de-leverage, including the SCPEL obligation, a repurchase of the Perpetual Notes and the reduction of borrowing.
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.”
Stephen Thomas, CEO, Renaissance Services said, “This is a win-win solution for everybody involved. It’s a good deal for the buyer. Renaissance aspires to be the best service solutions company. We expect profitability to treble when the Renaissance Village Duqm reaches 100 per cent occupancy. Plans are on the anvil to double the capacity in Duqm.”
The Board of Directors of Renaissance will call for a general meeting with its shareholders on July 29, to present the offer from DP World for their approval.