MMA Offshore Limited has entered into agreements with Toll Group for the sale of its Dampier and Broome Supply Base assets.
The sale of both assets is part of MMA’s ongoing capital management strategy to rationalise non-core assets and reduce debt over the course of the 2017 financial year.
MMA will realise approximately $44.1 million from the sale of the Dampier Supply Base asset and $8.7 million from its 50% interest in the Toll Mermaid Logistics Broome Supply Base.
The net proceeds of the Transactions will be applied to debt reduction.
The Transactions are subject to customary regulatory approvals along with a number of other conditions precedent, including (in the case of the Dampier Supply Base asset sale) receipt of certain key counterparty consents and there being no prescribed material adverse change events.
MMA said the Dampier Supply Base asset sale is expected to complete by June 2017 and the Broome Supply Base sale by April 2017.
The company’s chairman Tony Howarth said the sale of the Supply Base assets marks a significant step in the strategic repositioning of MMA’s asset portfolio and is supported by the company’s Banking Syndicate.
“Historically the Supply Base assets were a significant contributor to the earnings of our predominantly Australian focussed operations. However, in recent years the Supply Base business has become less significant as the company has focused its strategy on its Australian and international offshore vessel operations.
“Proceeds from the sale will strengthen our Balance Sheet and position MMA to take advantage of improved oil and gas market conditions when they occur.”