Seaspan Corp.’s (NYSE:SSW) initial foray into alternative energy options has been put on hold.
In late 2018, the Vancouver-based company, the world’s largest independent containership lessor, announced plans to invest up to US$200 million in Swiber Holdings Ltd., a Singapore-based offshore oil and gas field engineering and construction business, as part of Seaspan’s business diversification game plan.
But earlier this month the two companies agreed to terminate the deal. Neither company has detailed the reasons for the deal’s termination, but its completion was contingent upon a number of conditions being fulfilled as of December 31, 2019.
The financially troubled Swiber Holdings was placed under judicial management in October 2016.
Swiber creditors had approved Seaspan’s proposed restructuring of the company last May.
The proposed Swiber investment included five ships and would have given Seaspan an 80% interest in the restructured Swiber Group and a US$180 million investment in a US$1 billion liquefied natural gas-to-power project being developed in Vietnam. Seaspan CEO Bing Chen said at the time that the Swiber investment would “unlock substantial value” for Seaspan.
Seaspan declined to comment on the termination of the Swiber deal or whether it planned to pursue other power projects involving LNG and alternative energy sources.