McDermott and CB&I have both received the necessary stockholder approvals to complete the proposed merger, McDermott said on Wednesday.
Upon completion of the transaction, McDermott stockholders will own approximately 53 percent of the combined company on a fully diluted basis and CB&I shareholders will own approximately 47 percent of the combined company.
As a result of the approval by McDermott stockholders of the 3-to-1 reverse stock split resolution, CB&I shareholders will receive 0.82407 shares of McDermott common stock for each share of CB&I common stock tendered in the exchange offer.
“With the receipt of these approvals, McDermott and CB&I believe that all material conditions to the combination, other than those to be satisfied on the closing date, have been satisfied,” McDermott said in a statement.
The transaction is expected to be completed on May 10, 2018, subject to confirmation of satisfaction of the closing conditions.
The new combined company intends to retain the name McDermott as well as David Dickson as its CEO.
Subsea 7 offer rejected
As previously reported, the UK-based subsea engineering company Subsea 7 in April attempted to take over McDermott via an unsolicited offer, however, McDermott rejected the offer.
Subsea 7 had proposed to acquire McDermott common stock for $7 per share, payable entirely in cash or up to 50% in Subsea 7 stock and the balance in cash, to which McDermott reacted by saying the offer significantly undervalued the company and was not an attractive alternative to the proposed $6 billion worth combination with CB&I.
According to the New York Times, the value of the unsolicited offer by Subsea 7 was around $2 billion.
Offshore Energy Today Staff