Boskalis and its co-shareholder KS Investments Pte. Ltd. (Keppel) have signed an agreement relating to the sale of their harbor towage activities in Singapore and Malaysia to Rimorchiatori Mediterranei S.p.A. The sale transaction relates to Keppel Smit Towage Private Limited (KST) and Maju Maritime Pte Ltd (Maju). Under the terms of the agreement, Boskalis expects to receive approximately EUR 80 million in cash for its 49% equity stake. The contribution of KST/Maju to the net profit of Boskalis over the last two years was EUR 4 million per annum.

Boskalis and Keppel to sell KST and Maju to Rimorchiatori Mediterranei

Keppel Smit Towage (KST) was established in 1991 as a joint venture between Keppel and SMIT, a wholly-owned subsidiary of Boskalis. Over the past thirty years, KST has developed into one of the largest and leading harbor tug service providers in Southeast Asia. KST operates a combined fleet of 58 tug boats in Singapore and through its joint venture in Malaysia.

The sale of KST follows the strategic decision taken by Boskalis in 2019 to divest its harbor towage activities. Boskalis divested its stakes in Saam Smit Towage and Kotug Smit Towage in 2019.

Rimorchiatori Mediterranei S.p.A. is a subsidiary of Rimorchiatori Riuniti Group, a leading maritime service provider headquartered in Genoa, Italy established in 1922. Rimorchiatori Mediterranei operates a fleet of more than 100 modern vessels in more than 20 major ports employing approximately 900 people.

The agreement is subject to approval from the regulatory agencies in Singapore and the transaction is expected to close in the first half of 2022.