Date lodged: 3 May 2018
To ask the Scottish Government, in light of its equity stake in Burntisland Fabrications, whether it has secured or is seeking representation on the company’s board.
Answered by: Keith Brown 18 May 2018
As I disclosed to the Scottish Parliament on 18 April 2018, the Scottish Government has extended the loan facility made available to BiFab, to enable completion of contracts associated with the Beatrice offshore wind farm. Debt under the loan will be converted to a minority equity stake in the company. The extent of the shareholding will be determined by the extent to which the loan facility is drawn down in completing the BOWL contracts. The shareholding will not exceed 38%. The details of the loan facility, including repayment and conversion rates, are commercially confidential. The Scottish Government does not have representation on the BiFab board. The Scottish Government is actively managing its shareholding through a close working relationship with the company.
The Scottish Government did take independent advice on the transaction, including in relation to State Aid. The loan facility has been provided on a commercial basis.