The board of director of Fred. Olsen Production ASA today issued a statement in which it advises the company’s shareholders to accept the takeover offer made by the Labuan-based company Yinson Production Ltd.
To remind, Yinson on June 10 launched the offer to acquire 100% of the shares of the Company.
A cash consideration of NOK 9.40 will be offered per Share, which implies a total consideration for all Shares of approximately NOK 996 million (approximately US$ 170 million) also taking into account that the shares of the Company as from 30 May 2013 have been trading ex a dividend equal NOK 0.50 per share.
The Offer represents a premium of 5.1% over the closing price of the Shares on 7 June 2013 and a premium of 43.2% over the dividend adjusted closing price of the share the day before the announcement of the strategic review process by the Board of the Company 1 October 2012.
In the today’s statement Fred. Olsen Production board said: “Having carefully reviewed and evaluated the terms and conditions of this Offer including all of FOP’s strategic alternatives, the Board has, with due consideration for possible conflicts of interest, unanimously concluded that an acceptance of the Offer is in the best interest of FOP and its shareholders.”
Fred. Olsen Production ASA (FOP) is listed on the Oslo Stock Exchange (trades under the ticker “FOP”) and has been active in the offshore oil & gas production business since 1994.
The activities of Fred. Olsen Production ASA and its subsidiaries (the Group) consist of the operation and ownership of a fleet of three Floating Production, Storage and Offloading (FPSO) units, one production jack-up (MOPU) and one Aframax tanker. An FPSO unit is operating offshore fields for the production of oil and/or gas.
Yinson, a company listed on the Main Market of Bursa Malaysia Securities Berhad, is an investment holding company and acts as an insurance agent, and its subsidiaries are principally involved in provision of transportation services, trading in construction materials and provision of marine services.
Offshore Energy Today Staff, July 5, 2013