Investment firm KKR is reportedly planning to plough $400 million into cable into subsea cable laying and maintenance firm OMS Group.
Citing unnamed people familiar with the matter, Bloomberg reports the US-based private equity giant is in advanced talks to buy a stake in OMS, which would value the cable firm at around $1 billion.
The fresh capital can help accelerate the subsea cable firm’s expansion plans and an agreement could be reached soon, the publication said.
The companies involved declined to comment, and the deal could still fall apart.
Founded in 1983, Optic Marine Group is based in Selangor, Malaysia. The company provides subsea cable installation and maintenance. The company's CS Lodbrog ship landed the Natitua Sud cable in French Polynesia in April this year and is handling the installation of an upcoming domestic subsea cable connecting east and west Australia.
Currently, OMS operates six cable laying and repair vessels – the most recent, the CS Cable Vigilance, launched last year – as well as two barges and three tug boats.
Bloomberg had previously reported the Malaysian company had been weighing a listing in Kuala Lumpur as soon as this year with the aim to raise as much as $300 million.
Cable ships are few and far between. According to the ISCPC, there are around 60 cable ships in operation, many of which are over 30 years old. With more than 400 subsea cables running and demand increasing, a limited supply of vessels can delay project and slow repairs.
