Samsung Heavy Industries (SHI) has confirmed that it will merge with Samsung Engineering Co. Ltd.
In a statement released on SHI’s website, it was said that the merger would create a “world-class total solution provider for shipbuilding and onshore and offshore services.”
The merger ratio will be fixed at 1:2.36. Therefore, SHI will issue new stocks so that the shareholders of Samsung Engineering can exchange their shares for the SHI shares and receive 2.36 SHI shares for every Samsung Engineering share they own.
Through the merger, SHI will gain engineering, procurement, and project management capabilities, which are the strengths of Samsung Engineering, and establish a stable foundation for the growth of its offshore plant business.
Meanwhile, Samsung Engineering will be able to diversify into high value-added projects such as onshore LNG and offshore plants by securing SHI’s offshore plant fabrication capabilities.
The merger will give the two companies a chance to become a global top-tier EPC (Engineering, Procurement and Construction) company. The goal is to grow into a world-class total solution provider, increasing combined revenues of 25 trillion in 2013 to 40 trillion won in 2020.
Dae-young Park, President and CEO of SHI, said: “The two companies will be reborn as the world’s most competitive plant company based on our world-class manufacturing facilities, fabrication experience, and outstanding technical manpower in the onshore and offshore businesses”.
Choong Heum Park, President and CEO of Samsung Engineering, was quoted as saying: “We will emerge as a total solution provider that caters to the diverse needs of our clients by combining the expertise and technologies we have each accumulated as individual companies in the plant, shipbuilding, and offshore industries.”
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/lng-shipping/01092014/shi-merges-with-samsung-engineering-1311/