The owner and operator of platform supply vessels (PSVs) Nordic American Offshore (NAO) has informed that its project to combine with Horizon Maritime Services has been called off.
A stock exchange announcement from the Bermuda-based company said: "The contemplated business combination, involving NAO and a group in Eastern Canada (Horizon Maritime), has been shelved as it has been decided not to move forward at this time."
It added that a Nordic company (Nordic Canadian Shipping Ltd) was engaged in the area during the 1990s at the Cohasset Panuke oil field which ceased oil production in 1999.
If the deal passes due diligence and a binding agreement is executed by 31 October, NAO’s shareholders will take a 48% stake and Horizon Maritime’s a 52% stake in the merged entity, it said then.
The company announced October 1, 2018 describing the business combination between NAO and Horizon Maritime of Canada. In the announcement, NAO advised an ambition to execute a binding agreement within October 2018.
Later on October 31 NAO said that the parties are now in agreement on the main terms of the combination. However, diligence processes are ongoing. The companies look forward to signing a binding agreement as soon as practically possible. As of December 31, 2017, it had a fleet of 10 PSVs.
And now, Nordic American Offshore has contemplated the offshore project and decided to shelve it.
Canada-based Horizon Marine Services is a provider of integrated crew management services to the international shipping and offshore industries. It has a fleet of seven OSVs. Both companies specialise in harsh environment operations.
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