Arne Blystad’s move into the seismic survey sector, following the merger of his Songa Bulk with Houston-based Axxis Geo Solutions, is not the start of a major drive in the offshore space.
Oslo-listed Songa Bulk — which sold its dry cargo fleet to Star Bulk Carriers last year — will assume assets, rights and obligations by issuing shares to investors of Axxis Geo Solutions.
Songa Bulk chief executive Thomas Ronningen said the move does not mean Blystad will make a strong push into a new market sector.
He revealed that the deal was initiated by Axxis Geo Solutions, which has been seeking a full stock listing.
“For us, the alternative was to liquidate Songa Bulk,” Ronningen said.
Axxis Geo Solutions will continue to be listed on the Oslo Axess. It operates a scalable asset-light strategy through chartering of vessels and nodes. Axxis Geo Solutions currently operates four ships, and has banked more than $1bn in revenue over the past 10 years.
Ronningen became chief executive of Songa Bulk last year after Hermann Billung left the company following a sale of 15 bulkers to Star Bulk for 13.7 million common shares and $145m in cash. The sale left Songa Bulk without any operations and with limited assets.
Blystad and his co-investors held 24.35% of the company in January.