Kim Heng Offshore and Marine, a subsidiary of Singapore’s Kim Heng Group, is set to acquire the remaining 49% stake in Bridgewater Offshore Pte Ltd (BOPL) for $5.1 million, taking full control of the subsidiary. The purchase marks a strategic move by Kim Heng to consolidate its holdings and enhance its operational capacity in the offshore marine sector.
The acquisition, which will be completed through three monthly payments of $1.7 million starting in August 2023, is expected to conclude by October 23, 2024. The buyout will see Kim Heng Offshore and Marine purchase the stakes from investment funds Phillip Enterprise Fund Ltd. and Phillip Ventures Enterprise Fund 5 Ltd, both of which are currently undergoing voluntary liquidation. The joint venture agreement with these partners will also be terminated as part of the transaction.
Kim Heng’s move to acquire full ownership of Bridgewater Offshore is significant for several reasons. According to the company’s statement, if the transaction had been finalized before the start of 2023, Kim Heng’s net profit attributable to shareholders for the year—reported as S$1.6 million—would have reflected a loss of S$985,000. This change underscores the financial impact and strategic importance of the acquisition on the company’s bottom line.
The deal also builds on a previous capital injection into Bridgewater Offshore in 2020, which saw Kim Heng and its joint venture partners raise funds to support the acquisition of distressed assets. At the time, Kim Heng contributed $1.9 million, which was raised through the sale of the AHTS vessel Bridgewater 80, while the other two parties each invested $888,725 in cash. This funding was utilized to bolster Bridgewater Offshore’s asset portfolio, which includes six anchor handling tug supply vessels (AHTS) and two anchor handling tugs (AHT).
Singapore’s Kim Heng Group Expands Control Over Joint Venture
By acquiring the full stake in Bridgewater Offshore, Kim Heng aims to consolidate its interest in these assets, thereby enhancing its chartering segment’s capacity and capabilities. This strategic acquisition is expected to provide Kim Heng with greater control over its fleet, allowing it to optimize its operations in the offshore marine market.
The transaction is also likely to have broader implications for Kim Heng’s business strategy. Full ownership of Bridgewater Offshore allows Kim Heng to further strengthen its market position, improve its service offerings, and better manage its fleet operations. With a more streamlined and integrated structure, Kim Heng will be well-positioned to capitalize on opportunities in the offshore sector, which is experiencing renewed interest and investment amid global economic recovery.
This acquisition represents a pivotal step in Kim Heng’s ongoing efforts to expand its footprint in the offshore marine industry. By consolidating its holdings, Kim Heng is poised to achieve greater operational efficiency and enhance its competitive edge in the market.
