Bourbon has signed a letter of intent to sell its freight operator activity to a company which is 100% controlled by Jean-Louis Bottaro and his family. Bottaro founded and managed Setaf from 1968 to 2008.
In this sale the cement carrier Endeavor remains the property of Bourbon, who continues to operate it within the framework of a service contract with the buyer.
"The development of our Freight Operator activity requires investments that Bourbon would not be able to make for several years, due to the decisions announced in the Bourbon 2015 Leadership Strategy. This is why the sale to a professional in the Bulk field is the best solution for the development of this activity", said Jacques de Chateauvieux, CEO of Bourbon. "With this sale, Bourbon becomes a pure player in marine services to the offshore oil and gas industry, focused on the implementation of its strategic plan."
The sale should be completed before the end of the year and should generate a capital gain of about $14m. Given this plan to sell and with the application of IFRS, financial data related to the Bulk Division will be reclassified in "income from activities held for sale," as from January 1st 2010.