SEA9 Pte. Ltd., an investment-holding company incorporated in the Republic of Singapore, has launched a takeover offer for Kreuz, a Singapore-based subsea services provider to the offshore oil and gas industry. SEA9 Pte. is a subsidiary of The Headland Private Equity Fund 6 L.P, a pan-Asian private equity fund advised by Headland Capital Partners Limited
The offer of S$0.80 per ordinary share, values Kreuz at S$445.6 million. The cash consideration of S$0.80 per share represents a premium of 11.1% and 39.6% above the 6-months and 12-months volume weighted average prices respectively of Kreuz Shares to November 1,2013.
Kreuz’s market capitalisation as of the close of market trading on 1 November 2013 was approximately S$426.1 million.
In a press release issued today Kreuz said that the Transaction provides Kreuz shareholders with the opportunity to realise their investment at a premium to recent trading prices of Kreuz shares. The Transaction is also expected to allow Kreuz to continue to develop and execute upon new growth initiatives, such as investing in new vessels to support the business, the company added.
Kurush Contractor, the CEO and Executive Director of Kreuz, commented “We are pleased to receive the Scheme proposal from SEA9 and we look forward to working closely with Headland and SEA9 towards ensuring quality performance with accountability to our clients. The incoming delivery of a state-of-the-art Diving Support Vessel, will enhance Kreuz’s capabilities in shallow, deep and ultra deep offshore operations globally, and support Kreuz as it seeks to execute upon its growth initiatives”.
Paul Kang, a Senior Partner of Headland, commented “The Transaction represents an attractive and exciting opportunity for SEA9 to invest in a focused subsea services provider. Headland and SEA9 are well positioned to partner with Kreuz to provide resources and strategic input to assist the Company in pursuing future growth initiatives”.
Offshore Energy Today Staff, November 05, 2013