PHILADELPHIA – Philly Shipyard ASA (XOAX: PHLY) has entered into a share purchase agreement (SPA) with Hanwha Systems and Hanwha Ocean for the acquisition of Philly Shipyard, Inc. (PSI). This transaction will transfer ownership from Aker to Hanwha, with the latter paying a cash consideration of USD 100 million.
Kristian Røkke, Chairman of Philly Shipyard ASA, expressed pride in the transition. “After two decades of stewardship, it is with great honor that we transition the ownership from Aker to Hanwha. Recognized as a global leader, Hanwha brings a wealth of sophisticated shipbuilding experience that will enable Philly Shipyard to realize a grander vision for its employees and customers. Reflecting on the past 17 years, I am personally grateful for the opportunity to have worked side by side with the people of Philly Shipyard and eagerly anticipate witnessing the shipyard’s continued growth and success in the future.”
The transaction is subject to customary conditions, including approval from the Committee of Foreign Investments in the US (CFIUS) and other regulatory bodies, along with the absence of any material adverse events affecting PSI. If all conditions are met, the deal is expected to close in Q4 2024.
The board of directors at Philly Shipyard has received a fairness opinion from Arctic Securities, deeming the transaction financially fair for PHLY. Based on this, the board has approved the sale. Notably, if cost overruns in PSI’s current projects exceed USD 100 million beyond current estimates, the purchase price will be adjusted accordingly. However, except for certain transaction costs, the purchase price is not subject to other adjustments.
Source:Phill Shipyard
