Sical to Acquire Singapore-Based Bergen Offshore Logistics

Sical Logistics Ltd, India’s leading provider of integrated multi-modal logistics for bulk and containerized cargo, today announced that it has acquired Singapore-based Bergen Offshore Logistics Pte Ltd, a provider of specialized logistics for offshore oil and gas exploration. The acquisition is a logical extension of Sical’s existing offshore logistics business which operates and manages 17 offshore supply vessels for India’s leading energy exploration company, ONGC Ltd.

Under the terms of the share purchase agreement between Sical Logistics and Bergen Offshore, Sical will pay an all inclusive consideration of USD 96.9 mln towards acquiring 100 % equity in Bergen as well as 3 anchor handling tugs and 1 platform supply vessel.

The acquisition is being funded via USD 16.9 million from the company’s recent FCCB offering and the remaining via a structured loan of USD 80 million from NIBC Bank, Singapore.

Sical’s Vice chairman Ashwin Muthiah said that Sical’s latest acquisition signals Sical’s commitment on offshore logistics as a key focus.

“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 favorable demand-supply mismatch for the next few years. Customer acquisition will not be an issue as we have demonstrated our expertise in offshore logistics by successfully working with ONGC for a few years now,”Mr Muthiah said.

“With Bergen’s acquisition, Sical has taken its first firm step towards achieving global presence in offshore logistics,” he added.

ABOUT SICAL

Sical Logistics Ltd is India’s leading provider of integrated multi-modal logistics for bulk and containerized cargo─port logistics; inland transportation and warehousing; container stations; and offshore supplies logistics. Sical's delivery network includes an exclusive walk-in berth at Chennai for ships carrying bulk cargo; a container terminal at Tuticorin, 1.9 million square feet of storage across 104 warehouses; owned and regularly contracted fleet of over 2400 transport vehicles, and container freight stations at 4 locations across India. Sical's FY2005-06 revenue was Rs 9.60 billion on Rs 301.9 equity capital.

Source: http://www.businesswireindia.com