Fugro to monetise part of its interest in Global Marine

Source: press release, 30 October 2019

Fugro Chief Executive Officer, Mark Heine
Fugro Chief Executive Officer, Mark Heine (photo: Fugro)

Following the announcement from HC2 Holdings, Inc., (HC2) concerning the sale by Global Marine Group (GMG) of its stake in Huawei Marine Networks (HMN), Fugro, through its ownership of 23.6% in GMG, will be able to monetise part of its non-core interest in GMG.

GMG has agreed to a sale of its 49% stake in HMN to Hengtong Optic-Electric Co Ltd, in a transaction that values HMN at USD 285 million, and Fugro’s stake in HMN at approximately USD 33 million. Initially, GMG will sell 30% of HMN (which represents a value of approximately USD 20 million for Fugro) and retain a 19% interest under a 2-year put option agreement.

Completion of the sale is expected in the first quarter of 2020, subject to customary closing conditions, with proceeds delivered to GMG at that time. Fugro’s share of the net proceeds from the sale will be utilised to reduce its outstanding debt position.

Mark Heine, CEO, comments, “I am very pleased with the outcome of this transaction, which is a step towards monetising our non-core assets, in line with our Path to Profitable Growth strategy. We will continue to work towards a full divestment of our remaining position in GMG. In this process, we are fully aligned with HC2.”