CHC LLC purchases Babcock
 

Heard from couple of reliable sources that Babock have purchased CHC in the UK. Nothing official out there though,

They really are going after the 'start with a large fortune' motto...

What happened to getting out of oil and gas?

Could well be positioning for UKSAR2G bid

Why would you buy a company that's only bidding but hasn't actually won anything yet? They'd be better off buying CHC Norway, but they didn't and bailed out completely from Norway. This rumour makes no sense whatsoever, especially not considering Babcock's multiple negative statements regarding offshore.

Besides, as far as I know, CHC UK isn't a seperate business unit, but part of a larger European business unit. They'd have to break that up first before they could sell the UK. But who knows, maybe Brexit more or less done this for them already.. Anything goes afterall in this dog eat dog world of O&G. Time will tell if this crazy rumour is true but I find it rather unlikely.

Well it will be a stand alone AOC, and CHC Scotia LTD is a distinct UK Legal entity.

Why would CHC sell the only part of their operation which generates a significant amount of cash flow? Much of what CHCUK makes is syphoned off to pay for “Corporate”. CHCUK will never make a taxable profit, “Corporate” will make sure of that.

Not the only one to do that...

Certainly Babcock is a device for relieving government of their money and UK SAR has been shown to be a reliable revenue source for Bristow through hard times in other quarters. However, both Babcock and CHC are already members of 'the usual suspects' having both done some SAR in the UK SRR. We also live in an age where 'parent company guarantee' is proven to be not worth the paper it's not written on, so sheer size doesn't cut it. I shall be interested to see what this turns into.

Roundwego - CHC UK would be sold because the investors have had enough of pouring money into the overall entity and want some of their money back. If they would rather sell off the money making bit and take that cash then shut down the rest of the loss making operations, isn't that better for them? No one will pay for a major loss making business. People will pay for a profitable one. I heard the story has legs from my sources.

Which sources and where? Pilots? Engineers? Or actual managers/shareholders involved in either Babcock or CHC, cause otherwise all these "sources" don't really hold any credit with all due respect. If all these "sources" were correct, CHC'd be merged with Bristow for 1,5 years now...

https://www.pprune.org/rotorheads/62...hc-merger.html

I thought CHC had already merged.

;)

SNI, it's not pilots or engineers. My sources are solid but there is a lot more complexity than a simple buy/ sell transaction.

Those are some serious sources then very close to the fire... Either that or the top managers and anyone below are very good at portraying a different picture in recent briefings and communications in both CHC and Babcock. There's zero rumours or whistles on the ground here in the UK with regards to a Babcock take over of CHC UK. You and Kiwi are the only ones in the know apparently...

Ned you are very well connected in the industry, would you care to elaborate.

Perhaps a reverse take over makes sense?

https://devencore.com/main-property-...740-Agar-Drive

4740 AGAR DRIVE

RICHMOND, BRITISH COLUMBIA V7B 1A3

FOR LEASE

ABOUT THE PROPERTY

Opportunity to lease 9,019 to 18,705 square feet of A-Class office space at Vancouver International Airport (YVR). This two storey building has exceptional improvements built-out with multiple offices, boardrooms, kitchen facilities, and open plan areas. 9,019 square feet on the main floor and 9,686 square feet on the second floor. Furniture is available. Mountain and river views. Located next to a bus station stop and 12 minutes from Bridgeport SkyTrain Station. Ample parking included.

That’s the East Building. Used to be Corporate before that all got moved to Dallas 7-8 years ago. They’ve been trying to lease it out ever since - nothing new.

I can see where you're coming from with that. Looking back across the last few years I can sort of imagine a conversation at Babcock "Whose idea was it get into aviation anyway? We're Babcock. We say 'jump' and the government asks 'How high?'. Now we have all those flying types telling us we can't do this and we can't do that."

I can only speculate from the ‘client’ side of things but having asked both there appears to be nothing in this at all at this time.

The 3 main ‘legacy’ NS operators meet more often at high level that us plebs would be aware of and as they all talk constantly about consolidating its inevitable that rumour and speculation will abound.....no doubt that all 3 have probably sounded one another out. CHC and Bristow did, that’s common knowledge....

.... however an interesting snippet did reach my ear from a normally impeccable source that a large current NS contract up for renewal was potentially being awarded on a split basis between the two aforementioned in this thread and indeed inferred it could be viewed as a JV which would obviously lead to a bit of 2+2. I’ve heard nothing confirmed tho and for the avoidance of doubt, this is a rumour network!!

I heard the same, but the split was between one of these companies and another one not mentioned...

I don’t think this is on the scrap heap. Interesting to see if there are any announcements in the coming weeks. Obviously the top of the heap now knows the rumour mill has picked up on the story.

There have been questions raised locally in both companies. Both are saying there is nothing in the rumour, but that shouldn't come as a surprise. These kind of business deals are done at the highest levels in organisations, with local management deliberately kept in the dark.

It still seems improbably, but not impossible,

I’m told the announcement of the Repsol contract renewal is this coming Friday (although it’s been put back at least once that I know of)

While it might not shed much light on the original rumour, some folks I’ve spoken to recently seem to think it will have major implications for potential consolidation over the next year if it goes the way it’s being rumoured.

The announcement of Repsol will have zero impact on Babcock. I'm not sure what that does with regard to the rumour though :E

They cant cope with the contracts they already have :ugh:

Yeah, Babcock in 2021 have managed to drag themselves down to the low bar set by CHC.

Any update from your sources Ned?

There's another contract in the SNS that's up for renewal soon as well. Plenty of rumours and conjecture flying about over that one as to who will keep/lose/gain it

How are the mighty fallen

Ten years ago Bristow Aberdeen were flying a minimum of 65 flights a day; sometimes up to 75.

Today there were 13; tomorrow 17, being Friday.

In Australia:
None today. None tomorrow.
Their hanger in Karratha is looking very unloved.... :(

Quote:
Originally Posted by Twist & Shout View Post
In Australia:
None today. None tomorrow.
Their hanger in Karratha is looking very unloved.... https://www.pprune.org/images/smilies/sowee.gif
139 and 189 flying as normal within CHC Karratha today I see.


I think he may have been referring to the Bristow Ivory Tower Hangar in Karratha.

Correct.
A reference to the “Bristow in Aberdeen” update.

CHC are doing their best to follow, but are still running at this stage.
I hear from those with the relevant experience, that CHC management seem to be mirroring Bristow's management while in their death throws.
Sad.

Mitchaa - Couldnt really care what you think about me or who I do or don't know. Yes I am "only" a magazine publisher - but you know what I have been in this industry for about 30 years and in that time got to know a LOT of people in this industry - even over there in the UK. The world isn't really THAT small mate. And who said I know all the Ins and outs of the UK market - that has nothing to do with what I was told.

"To be fair, he should have been a lot more careful with what appears to be baseless rumours as there are hundreds of employees that could potentially be affected by this “rumour”." - Hmmm let me see - this place is called PPRUNE - notice the R in the word. My post is not the only rumour that's been posted here and not the only rumour that will be proven right or wrong. Don't like it - that's not my problem. Feel free to have a shot at every other person who posts a rumour here because every one of them effects someone somewhere according to your logic. What are these guys going to do - quit their job and go and find another one based on a rumour - sorry dont think so.

I am posting something I was told - it is what it is. I know and trust the people who have told me this and the are batting four for four on rumours they have filled me in on. You and others don't believe it - hey that's all cool - that's your and their choices. And how someone is affected by a "rumour" makes me laugh - mate its a RUMOUR. If and when its made a FACT then anyone involved in either company can do what they need to.

Have a great day and I stick by what I was told.

Thanks Ned for the reply

Yet I bet their management still think they should be “#proudtobebristow.....’ Mind blowing.

Reminds me of this video;

Jeez Ned, that is a funny video, and I know you’re thick skinned enough to enjoy it. Yeah, Songkhla.

CHC and Bristow were 1&2 on “highest cost to operate a helicopter”. Anyone with lower costs could bid accordingly and still make a profit for the shareholders. Tough luck for their employees, but blame it on a bloated bureaucracy for the sake of market valuation appearances.

Forgot about the silent Dutch partner siphoning off whatever meagre profit crumbs were left over in Europe. There’s your motivation for a shake up.

Silent partner? As in within CHC or an oil company intermediary as such?

Perhaps the shareholders are getting nervous about ownership rules post-Brexit. There is a 12 month grace period so that the rules can be agreed between the EU and UK. I think whatever is decided upon will have to be on a reciprocal basis, and I would be surprised if the EU would accept 100% UK ownership of an EU airline. So assuming reciprocity is maintained, then the current situation where 100% of CHC Scotia is EU owned will not be allowed. Could this be the driver to get Babcock involved, with say a 51% ownership deal?