As much as 86.5 per cent Topaz shares are held by Renaissance through its ownership of Topaz JAFZA, and the balance of 13.5 per cent shares of Topaz are owned by Standard Chartered Private Equity/Affirma Capital (SCPEL).
Under the terms of thThe Renaissance board will also call for a general meeting with its shareholders on July 29 to present the offer from DP World for their approval.e proposed transaction, Renaissance shall also receive a settlement from Topaz of an outstanding RO30.2mn (US$78.6mn) shareholder loan, the company said in a press statement.
DP World’s final binding offer is subject to regulatory consents and approvals, including Renaissance shareholder’s approval.
In a disclosure to the Dubai Financial Market, DP World on Monday also confirmed the acquisition of 100 per cent of Topaz from Renaissance and SCPEL for an enterprise value of US$1.079bn.
Through this divestment, Renaissance and SCPEL are passing Topaz on to a new ownership that has the synergies, capital strength and global reach to take the company forward to new heights, Renaissance said.
Renaissance said it 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, de-leverage 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’, the company added.
Samir J Fancy, chairman of Renaissance said, “We are happy with the outcome for Topaz – we acquired a small regional offshore support vessel (OSV) player almost 15 years ago and transformed it into a global leader with a unique market positioning and a 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,” he added.
Renaissance had acquired Topaz in 2005 when Topaz was a single-region operator and extended operations to the Caspian Sea 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 firm today operates a modern 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 firms, including BP, Tengizchevroil, Chevron, ExxonMobil, Dubai Petroleum, Saudi Aramco and Dragon Oil. Topaz, which employs over 2,500 people, reported consolidated revenues of US$349mn for the financial year 2018.
Renaissance on Monday held a meeting at the Muscat Securities Market for stakeholders and analysts to discuss details of the transaction with the company’s management. The Renaissance board will also call for a general meeting with its shareholders on July 29 to present the offer from DP World for their approval.