Srei sells its 38% stakes in Quippo Prakash for $122mn
Mumbai: Private sector lender Srei Infrastructure Finance (SIFL) Thursday said it has sold its 38 percent stakes in the derrik lay barge Quippo Prakash to a Malaysian firm SapuraKencana for a realisation of USD 122 million.
"Srei Infrastructure's subsidiary, Quippo Oil and Gas Infrastructure, has sold its investment in the derrick lay barge 'Quippo Prakash' to SapuraKencana of Malaysia for USD 122 million," the company said in a statement.
The Kolkata-based company had a 38 percent stake in Quippo Prakash through Quippo Oil and Gas Infrastructure, a 100 percent subsidiary of Srei Infrastructure Finance.
The investment in the barge was made in 2008, at a time when the downturn in the offshore markets allowed Quippo to negotiate favorable terms from shipyards, Srei's vice-chairman Sunil Kanoria said.
"The offshore oil and gas construction market has shown a sharp upswing since the time Quippo Oil and Gas Infrastructure had invested in the vessel. Having invested when the market had bottomed out, Quippo took advantage of the present buoyant conditions to exit its investment," he said.
Srei has been creating a portfolio of strategic investments over the past years and as and when there is an opportunity of encashing with a good return, it does so, he said.
"Outfitted in Singapore and commissioned in 2010, the state-of-the-art offshore construction support barge upon delivery was placed on term charter with a major offshore contractor in South East Asia, generating positive returns and cash-flows immediately," Kanoria said.
Equipped with a 2,000 million tonne crane, the barge was designed to provide offshore construction support and underwater pipe-lay capability, the release said.
Increasing levels of activity in the subsea construction market, the vessel had generated considerable interest amongst major offshore contractors, he added.