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Prosafe and Floatel to merge

Prosafe SE (“Prosafe”, Oslo Stock Exchange ticker PRS) and Floatel International Ltd (“Floatel") have today signed an agreement to merge their respective businesses.

The aim is to create a more robust company with improved services and geographical presence, able to sustain a prolonged cyclical downturn and challenging markets for offshore accommodation.

Prosafe SE, Stavanger, is a leading owner and operator of semi-submersible accommodation vessels (flotels) listed on the Oslo Stock Exchange, and, like Floatel International Ltd, Bermuda, delivers offshore accommodation to clients in the oil and gas industry worldwide. In a merger of equals, Prosafe will acquire Floatel with consideration in Prosafe shares, whereby Floatel’s principal shareholders will become large shareholders in Prosafe.

- The need for consolidation in oil services is well known. We consider this transaction not only strategically sound, but also necessary to adapt to the significant changes in our markets and competitive landscape in recent years, says Glen Ole Rødland, chairman of the board at Prosafe SE.

A merged company will have the most modern and flexible fleet in the global market, with lower costs, increased geographical presence and a strengthened customer offering. The merger will create the world’s largest offshore accommodation company, combining Prosafe’s existing nine semi-submersible vessels and options for two newbuild semi-submersible vessels with Floatel’s five semi-submersible vessels.

The combined company will be positioned to take advantage of further operational efficiencies as well as enhanced global reach from an enlarged fleet. The combined entity will be better positioned to sustain a prolonged cyclical downturn, with challenging market outlook and falling utilization and reduced hook up and commissioning work.

The transaction is an all-share merger of equals and will be implemented through issuance of new shares in Prosafe as consideration for all ordinary shares in Floatel. After completion, Prosafe and Floatel shareholders will, on a fully diluted basis (including Prosafe convertible bonds and Prosafe warrants), own 55% and 45% of the combined company's equity, respectively.

The name of the combined company will be Prosafe SE, and the shares of the combined company will continue to be listed on the Oslo Stock Exchange under ticker code PRS. For the year ended 31 December 2018, the combined company had revenues of more than USD 600m and an EBITDA of more than USD 300m.

Please see www.prosafe.com for further information.