The Hindu Business Line : Sical Logistics buys Bergen Offshore for $96.9 m

While $16.9 million would be funded from the company's recent FCCB offering, the remaining $80 million would be funded through a structured loan from NIBC Bank

Chennai , Sept. 27

Sical Logistics Ltd has acquired the Singapore-based Bergen Offshore Logistics Pte Ltd for $96.9 million (around Rs 445 crore). While the Chennai-based Sical provides integrated multi-modal logistics for bulk and containerised cargo, Bergen provides logistics for offshore oil and gas exploration, according to a Sical press release.

Under the terms of the share purchase, Sical will pay an all inclusive consideration of $96.9 million towards acquiring 100 per cent equity in Bergen and three anchor handling tugs and one platform supply vessel.

Funding

While $16.9 million would be funded from the company's recent FCCB (foreign currency convertible bond) offering, the remaining $80 million would be funded through a structured loan from NIBC Bank, Singapore, says the release. The Sical Vice-Chairman, Mr Ashwin Muthiah, said in the release, with Bergen's acquisition the company has taken its first step towards achieving global presence in offshore logistics. The acquisition is a logical extension of Sical's existing offshore logistics business, which operates and manages 17 offshore supply vessels for ONGC Ltd.

Energy Exploration

Globally, in the face of the continuing high demand for energy, the offshore energy exploration space has become very active, and this has created large demand for new generation, deepwater capable support vessels. "We see a favourable demand-supply mismatch for the next few years," he said.

Sical's board at a meeting on September 26 gave its concurrence for the company to invest in Sical Iron Ore Terminals Ltd, a Special Purpose Vehicle formed to implement the Ennore Iron Ore Terminal on a BOT (build, operate and transfer) basis. It may be recalled that recently Sical got the letter of intent for the Rs 550 crore project.

BOT Contract

Operations are scheduled to begin in financial year 2008-09. The terminal will be developed on BOT contract for 30 years, including the construction period. It will have an annual capacity for 12 million tonnes of cargo expandable to 15/20 million tonnes. Facilities in the terminal include a jetty, ship loader, mechanised handling system with conveyor, storage and a wagon unloading system.

The project, to be implemented on a revenue sharing basis with Ennore Port, is expected to generate annual revenue of Rs 200 crore, according to earlier information provided by Sical to the Bombay Stock Exchange.

Initially, the terminal will handle Panamax and Capesize vessels up to 150,000 DWT (dead weight tonne), and after dredging the terminal would be able to handle vessels of 225,000 DWT, according to the information available in the BSE Web site.

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