1st Oct 2019 17:05
(Alliance News) - InfraStrata PLC said on Tuesday it has agreed to buy the assets of Harland & Wolff Heavy Industries Ltd and and Harland & Wolff Group PLC from administrator BDO NI for GBP6 million.
The assets comprise a multi-purpose fabrication facility, quaysides and docking facilities in the port of Belfast, Northern Ireland, which are "ideally suited" for the energy infrastructure industry and the company's projects.
Infrastrata shares closed up 9.7% at 0.5099 pence in London on Tuesday, giving the firm a market capitalisation of GBP7.6 million.
Of the GBP6 million consideration, a non-refundable deposit of GBP500,000 in cash is due by Thursday using a new short-term bridging facility. InfraStrata said it is in advanced negotiations with a number of lenders to provide a long-term debt facility to provide the balance of the GBP5.5 million consideration, and equity will also be considered.
GBP3.3 million of the purchase price is payable on completion, scheduled for the end of the month, with the remaining GBP2.2 million due by April 2020.
The acquisition cost is a "substantial discount" to the valuation of the assets, said InfraStrata, with these valued GBP11 million.
"This acquisition is a function of deep operational synergies between the various business segments of the company with Harland & Wolff underpinning the construction economics of the Islandmagee Gas Storage Project and other future projects," said InfraStrata Chief Executive John Wood.
The firm said this acquisition will bring in-house a large part of the fabrication requirements for its Islandmagee Gas Storage Project and proposed floating storage and re-gasification unit project.
Harland & Wolff was founded in 1861, and is famed for building passenger liner the Titanic.
"I am delighted by the news that InfraStrata have purchased the Harland & Wolff shipyard and retained the skills and experience of the existing workforce. I firmly believe that the shipyard has a promising future and that InfraStrata's plans present an exciting opportunity for both Belfast and Northern Ireland's manufacturing and energy sectors," said Julian Smith, secretary of state for Northern Ireland.
By Lucy Heming; [email protected]
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