Singapore opportunity

Rimorchiatori Mediterranei S.p.A. (“RM”), owned 65% by Rimorchiatori Riuniti Group and 35% by DWS Infrastructure, has entered into an agreement with Smit Singapore Pte. Ltd. (Boskalis) and KS Investments Pte. Ltd. (Keppel) to acquire 100% of Keppel Smit Towage Private Limited (“KST”) and Maju Maritime Pte Ltd (“Maju”) (the “Transaction”), two of the largest providers of harbour towage services operating in Singapore and Malaysia. Completion of the Transaction, expected to take place in the first half of 2022, is conditional upon the receipt of regulatory approvals in Singapore.

Following the completion of the Transaction, RM will become the third harbour towage operator globally, with a fleet of over 160 tugs operating in three different continents (South America, Europe and Asia) across approximately 30 ports and employing over 1,400 people.

After several important acquisitions completed over the last ten years in Italy, Greece, Malta, Colombia and Norway, the Transaction is a fundamental and transformative milestone in the implementation of RM’s growth and internationalisation strategy. Building on its strong position in the Mediterranean region, with the acquisition of KST and Maju, RM will become one of the leading towage service providers in South East Asia. The Transaction is a major achievement for RM and its management team, which will be further bolstered by the integration of KST and Maju’s management.

KST and Maju have a well-developed ESG strategy which is embedded across all their operations and culture and they continuously strive to enhance their technological standards, including regarding carbon footprint and fleet digitalisation. There is strong potential to share best practice across the broader organisation of RM, where management are already extremely focused on investing on a technological and modern fleet as part of the group’s ESG strategy.

Rothschild & Co acted as RM’s financial advisor and Millbank acted as RM’s legal adviser for the Transaction.