Coflexip Stena Offshore (CSO) confirmed that it was finalising with Peerless General Finance and Investment Company Ltd the acquisition of its stake in PSOS to bring CSO's holding to 58 per cent.

CSO currently holds 8.4 per cent of the equity share capital of PSOS and intends to increase its stake a further 49.8 per cent for approximately $11 million.

The acquisition, however, is subject to approval of the Indian government as well as various other regulatory authorities and corporate bodies, according to a company press note.

PSOS, which operates multi-support vessels for underwater/sub-sea engineering services, deep-sea diving, rescue operations as well as rescue operations, recorded a gross income of Rs 991 million in the 1998-1999 financial year.

CSO iscurrently active in the Asia-Pacific through its contracting base in Fermantle, western Australia and in Singapore and Mumbai. "This acquisition will enhance CSO's prospects for additional sub-sea construction activity in India and western Asia and we are convinced that PSOS will benefit from CSO's global market presence and technologies," said Kevin Wood, executive vice president for Asia and Pacific.

"Large potentials exist for our solutions in India and Western Asia, including flexible pipes as we recently demonstrated with our CRMP II contract with the Oil and Natural Gas Corporation (ONGC) Ltd.," Wood said. The acquisition, he added, would allow the company to work "more closely with our Indian clients and develop the synergy between the Indian and Middle Eastern markets." CSO, which is listed on Nasdaq in New York as well as Premier Marche in Paris, has its headquarters in Paris.

It has subsidiaries in the United States, Australia, Singapore and India, among other countries.