Nordic American Offshore Ltd (NYSE: NAO) announced on Monday that it has entered into a Memorandum of Understanding (MOU) which contemplates a combination with Canada based Horizon Maritime Services Ltd.
Canadian businessman and investor Mr John Risley and his companies are supporting the transaction.
Subject to due diligence and the execution of a binding agreement within October 31, 2018, NAO shareholders will own 48% of the resulting business and Horizon shareholders 52 %. In NAO, Mr Herbjorn Hansson and the NAO Board of Directors, are the driving force.
Hansson will remain Chairman & CEO of the combined company. Horizon Maritime will maintain its organization and brand in Canada under the leadership of it’s current CEO, Mr Sean Leet. Inherent in the transactions are an objective of strong expansion which can be expected to take place soon. The combined company is expected to be operational before the end of this year.
“The two companies are geographically complementary with focus on each side of the North Atlantic basin” commented Mr Risley and Mr Hansson.
Mr Risley said he was looking forward to offering the combined fleet to clients in Canada and elsewhere and build a more extensive operation. “The combined company has ambitions to increase the size and scope of the fleet going forward”, he added.
NAO is a Bermuda-based company listed on the New York Stock Exchange. It owns and operates a fleet of 10 identical harsh environment offshore support vessels designed and built with the latest technology available. From operating offices in Norway and elsewhere NAO is positioned to support a global business and take advantage of the expected upturn in oil service activity in the North Sea and globally.
Horizon Maritime is a Canadian company operating a fleet of 7 vessels with deep experience in harsh environment marine and offshore operations. With offices across the country Horizon Maritime helps solve the unique challenges of operating in Canadian waters and is well positioned for the increased offshore activity in Canada in the coming years.
Clarksons Platou Securities is acting as financial advisor to the parties.