EMGS Diversifies Business with Siem Day Subsea Construction Vessel Buy
May 7, 2025
Norwegian geophysical services company Electromagnetic Geoservices (EMGS) has established a new business platform within the offshore subsea construction market, having entered into a set of agreements for the acquisition of Siem Day offshore subsea construction vessel (OSCV).
A newly formed subsidiary of EMGS will acquire the OSCV Siem Day from the seller Siem Day II, which is a wholly-owned subsidiary of Siem Offshore.
The acquisition represents a strategic diversification for EMGS, complementing the company's existing electromagnetic operations and expanding into the growing subsea construction segment.
Importantly, this diversification aims to enhance the combined company's resilience and long-term value potential.
The Siem Day, built in 2013 by Vard, is a subsea construction vessel of the design type OSCV 11L.
EMGS will enter into a five-year bareboat charter agreement with the seller at a rate of $42,000 per day until December 31, 2025, increasing to $45,000 per day thereafter.
The charter includes purchase options exercisable at the third and fourth anniversaries of the charter commencement, as well as an unconditional purchase obligation at the end of the charter period.
The total acquisition price of $108.90 million is structured to minimize upfront cash outlay, with an initial payment of $10.89 million due at charter commencement, and the remaining balance gradually offset against charter payments, culminating in a final payment at the time of purchase.
Following the expiry of the current charter on December 31, 2025, EMGS plans to operate the vessel on term contract whilst remaining open to shorter term opportunities.
“The long-term strategy for EMGS is to pursue growth in the subsea sector through the addition of further vessels. By acquiring a high-quality asset already under contract and with opportunities in a dynamic subsea market beyond 2025, EMGS will provide its shareholders with direct exposure to potential value appreciation from a new, profitable business area,” EMGS said.
It is expected that Perestroika will acquire a 20% ownership stake in Siem Day II, resulting in each of Siem Offshore and Perestroika owning, respectively, 80% and 20% in the company.
