(Finance) – Saipeman Italian company of services and solutions for the energy and infrastructure sector, has signed a binding agreement with KCA Deutag (KCAD), a British company active in the drilling and engineering sector, for the sale of all of its Onshore Drilling activities compared to a cash consideration of $ 550 million in addition to one 10% stake in KCAD. The Italian company had unveiled the sales target of the Onshore Drilling activities at the end of March, on the occasion of the approval of the 2021 financial statements and the update of the plan after the prodit warning.
Saipem operates its onshore drilling activities globally, with particular focus on the Middle East and the Americas, in 13 countries, with approximately 4,000 people and a portfolio of 83 proprietary onshore drilling rigs. Division registered revenues for the full year 2021 equal to 347 million euros and a Adjusted EBITDA of 82 million euros; the company expects the Adjusted EBITDA of Onshore Drilling to represent approximately 20% of Saipem’s consolidated Adjusted EBITDA for the whole of 2022.
It is highlighted that the transaction does not involve any transfer of financial debt from Saipem to KCAD and that the proceeds of the transaction will improve Saipem’s liquidity, reducing net debt and supporting the implementation of its 2022-25 business plan. The closing is expected by 31 October 2022 for activities in the Middle East and by 31 March 2023 for the Americas. As part of the transaction, Saipem is assisted by JPMorgan And Lazard.