Lamprell receives early-stage acquisition proposal

Offshore engineering and services contractor Lamprell said March 29 that an investor had made an preliminary proposal to acquire a majority stake in its oil and gas division.

The company said its shareholders will have to wait to scrutinise its 2021 financial results, as the report has been postponed to consider the early-stage bid along with different funding options for its evolving business. Lamprell did not say anything further about the offer, aside from it has entered preliminary discussions with the interested party.

The UAE-based company has also been advancing talks on financial options that range from issuing new shares to new asset monetisation strategies, project-specific financing from Saudi financiers, and hybrid financing options.

The financial review is expected to report back to investors in the second quarter of this year.

Lamprell's finances were hit during COVID-19 due to difficulties in its supply chain and labour force. Under its new "Lamprell reimagined" strategy, the business has been restructured to separate oil and gas service contracts, digital operations and renewable energy projects.

Lamprell traditionally focuses on oil and gas rig fabrication, refurbishment and onshore engineering, procurement and construction (EPC). It is looking to expand into offshore EPC and installation (EPCI), having been awarded a big EPCI contract from Saudi Aramco in April 2021, under its long-term agreement programme with Aramco entered into in 2018.