EMGS Diversifies Business with Siem Day Subsea Construction Vessel Buy

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