Kim Heng sells 70% of Bridgewater Offshore to Umbilicore for US$26.8M
What's the deal? Singapore's Kim Heng Ltd.Dealroom has a profile for this one. Try Dealroom → has signed a binding letter of intent to sell 70% of its wholly-owned subsidiary Bridgewater OffshoreDealroom has a profile for this one. Try Dealroom → to Weft + Water HoldingsDealroom has a profile for this one. Try Dealroom →, doing business as UmbilicoreDealroom has a profile for this one. Try Dealroom →, for US$26.8 million (about S$34.1 million) in cash. The mainboard-listed offshore marine services provider will transfer 6,092,897 shares, representing the 70% stake, at closing.
The structure: The deal includes a novel arrangement transferring the economic and voting rights over a further 10% of Bridgewater via a separate option. That means Umbilicore will immediately control 80% of the subsidiary, while Kim Heng retains a 10% to 20% equity interest.
What's the endgame? Kim Heng wants to monetise its vessel assets, cut debt, and pivot towards engineering capabilities in geotechnical and cable-laying work. It plans to keep earning recurring revenue by providing yard, waterfront, and operational support to Bridgewater under its new owner.
By the numbers: The transaction, classified as a "major transaction" under Chapter 10 of the Catalist Rules, will lift Kim Heng's net tangible asset per share to 9.99 cents. The company says the divestment will increase net assets and substantially reduce debt and total assets.
The full price: Beyond the upfront US$26.8 million, the LOI provides for contingent payments tied to options and performance milestones. The total potential consideration reaches US$35,631,560 — including US$1.68 million for an additional 5% stake, US$5.12 million via a put option, and a US$2 million milestone payment — but none of these is payable at closing.
What could go wrong? The additional payment streams depend on options being exercised and a performance hurdle being met, so the full sum is far from guaranteed. Retaining only a minority interest also cedes control of the offshore platform to Umbilicore.
The signal: The deal reflects a broader move among offshore marine players to shed capital-heavy vessel assets while holding minority stakes to share in future growth. For Kim Heng, it is a bet that lighter engineering and services work offers steadier returns than owning the fleet outright.
Read more: minichart.com.sg
Image credit: Jnzl's Photos
