SINGAPORE - Keppel Corporation said on Tuesday (April 11) that its wholly-owned subsidiary Keppel Offshore & Marine (Keppel O&M) has entered into a term sheet agreement with Damen Shipyards Group (Damen) for the sale of its Rotterdam shipyard, Keppel Verolme, for an undisclosed sum.
Keppel said the proposed sale comes after a strategic review by Keppel O&M and is part of the company's efforts to optimise its operations and rationalise its global network of yards.
"Keppel O&M continues to see opportunities in the offshore oil and gas market in Europe and the North Sea, and will service these markets through its network of yards in Singapore and globally," said Keppel.
Keppel Verolme is situated in Rotterdam, the Netherlands, and has about 250 employees. Damen intends to continue activities in the shipyard with the current employees of the yard.
A notification of the proposed transaction has been filed with the Dutch Authority for Consumers & Markets on 10 April 2017. Keppel said the parties will work towards finalising definitive agreements, and the completion of the transaction will be subject to closing conditions and the receipt of relevant approvals.
The transaction is targetted to close by the end of the second quarter of this year.