Subocean rescued by mystery buyer

SUBOCEAN Group, one of the most high-profile offshore companies in the North-east and a major player in the renewables sector, has been bought out by a multi-national player after going into administration.

The sale - to an unnamed firm thought likely to be one of Subocean's rivals in the subsea cable-laying sector - will see the jobs of the majority of the 380-strong workforce saved. The sale price was not disclosed.

Bruce Cartwright, head of business recovery services at PwC in Scotland, said last night the company went into administration despite the efforts of the directors to find a "solvent solution" to protect both creditors and jobs.

The Aberdeen company admitted it was in financial difficulties earlier this month.

"Unfortunately it became clear that this approach was no longer feasible," added Cartwright. "We believe that the deal we have reached not only preserves the business and the employment of the majority of the workforce but will also allow it to develop to a new level. As such it is a critical step in the ongoing development of the renewables industry in Scotland," said.

Although PwC insisted yesterday that the buyer could not be named due to a confidentiality agreement, likely candidates include Aberdeen-based Subsea 7 and Norwegian oil services company Acergy, who are currently in the process of merging, and French group Technip.

Subocean, led by m,anaging director John Sinclair, had diversified from the oil and gas sector into offshore wind farms in recent years and had witnessed dramatic growth which led to it being named only last month as one of the fastest growing businesses in the UK. Last year, the company reported sales of more than 65 million, compared with only 1.7m four years ago and had opened an office in Germany to spearhead growth in Europe.

When its troubles were first revealed, Brian Adam, the SNP MSP for North Aberdeen, said the firm had been at the cutting edge of developments in the North Sea.

"Its innovative approach to subsea developments is important to the economy, not just to the North-east of Scotland, but to the whole of the country," he said.