Italian shipbuilder Fincantieri is making a swoop for Vard Holdings Limited, a company building offshore support vessels for the oil and gas industry.
Singapore-listed Vard, constructing offshore and specialized vessels, has around 9,000 employees and nine shipyards in Norway, Romania, Brazil and Vietnam.
Fincantieri’s subsidiary Fincantieri Oil & Gas intends to make a voluntary conditional cash offer for all of the issued ordinary shares in the capital of Vard Holdings Limited other than those already owned, at S$0.24 per share.
More precisely the offer is for the 523,528,732 shares not already held by Fincantieri O&G, equal to 44.37% of the Vard share capital. Fincantieri said that, in case of full acceptance, maximum consideration will be around $125.6 million Singapore dollars or around 82 million euros. The offer will be financed through available financial resources, Fincantieri said.
Fincantieri Oil & Gas builds equipment, systems and components for the oil and gas industry as well, including construction, maintenance and conversion of offshore vessels and drilling rigs. Fincantieri already owns 55.63 percent stake in Vard.
The Italian company said that, subject to acquiring 90 percent of Vard shares, it would delist Vard from the Singapore Stock Exchange.
According to Fincantieri, the offer price represents a premium of approximately 11.63 percent, 24.35 percent, and 29.73 percent over the volume-weighted average price per share for the one-month, three-month and six-month periods up to and including November 11. 2016.
“Amidst challenging market conditions in the oil & gas industry, the offer, therefore, represents a cash exit opportunity for shareholders to liquidate and realize their entire investment at a premium to the prevailing market prices, without incurring other brokerage and trading costs,” Fincantieri said.
Offshore Energy Today Staff