Royal Boskalis Westminster N.V. (Boskalis) has completed the sale of its equity stake in Saam Smit Towage to SAAM S.A. (SAAM). The intended sale was announced on 11 February 2019. In line with the initial announcement, Boskalis received approximately USD 200 million in cash for its equity stake in the joint venture resulting in a pre tax book gain of slightly more than EUR 40 million. The activities and results of Saam Smit Towage were deconsolidated as per 1 January 2019 following the signing of the Letter of Intent.
The towage joint venture between Boskalis and SAAM was formed in 2014 which at the time covered the respective towage activities in Brazil, Panama, Mexico and Canada. Since then, the joint venture has successfully expanded its presence and realized efficiency savings and commercial synergies. In joint discussions on how to most effectively respond to the more competitive market environment, Boskalis and SAAM came to the conclusion that an outright sale of Boskalis’ share to SAAM would be most beneficial for both parties.