The cable, which cost around $350 million to build, was purchased by the Singapore infrastructure giant for an undisclosed sum
The Hawaiki submarine cable, which links Australia, New Zealand, American Samoa, the Pacific Islands, Hawaii, and finally Oregon, US, was first conceived in 2012. Construction began in 2016 and, in 2018, the 15,000km cable finally went live.
“Hawaiki is the fastest and largest cross-sectional capacity link between the US and Australia and New Zealand. It will significantly enhance our connectivity to the rest of the world and, ultimately, improve the everyday lives of our communities,” said CEO Remi Galasso at the time, with the Governor of American Samoa, Lolo M Moliga, calling the cable a ‘game changer’ for the Pacific Islands.
Interestingly, the New Zealand government purchased $65 million in cable capacity as part of a multi-year anchor contract back in 2014, aiming to make the country less reliant on the Southern Cross Cable’s long-time monopoly on transpacific traffic.
Now, just three years after the cable went live, it is being sold in its entirety to Singapore-based BW Digital Pte. Ltd., an affiliate of BW Group Limited, for an undisclosed price.
BW Group is a maritime company involved in a variety of marine industries, including shipping, floating gas infrastructure, deep-water oil and gap production, and submarine connectivity.
“Our strategy is to help connect countries across the oceans while working to reduce our environmental impact, including recent investments into wind installation vessels, floating wind, batteries, solar and other sustainable technologies,” said Andreas Sohmen-Pao, executive chairman of BW Group. “Hawaiki is a great fit and we are pleased to be able to support the team in their next phase of development.”
The current Hawaiki team will continue to manage the cable business.
“We are delighted to welcome BW Group as a shareholder. Having established a successful subsea cable business with the support of our customers and partners, the company started a process to find a new long-term shareholder who is able to take the company to the next stage of development,” said Rémi Galasso, executive chairman of Hawaiki. “BW has an excellent track record of growth in maritime and technology-related assets, combined with the highest standards of governance and strong access to capital through relationships with leading global banks and through the capital markets. Three years after Hawaiki’s commercial launch, it is time to write a new chapter of the company’s history and we believe BW is an ideal shareholder for this fast-growing business.”
The acquisition of 100% of Hawaiki’s shares is, as always, subject to regulatory approval.
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