Singapore: Falcon Energy is still interested in buying out offshore support service provider CH Offshore (CHO) and has extended the closing date of its offer by another two weeks, in spite of having its bid rejected previously by CHO shareholders.
Singapore-listed Falcon has extended the closing date of its original offer from January 26 to February 9, with the option to extend it further.
Following the offer placed in December, Falcon has so far received valid acceptances for 9,302,934 of the offer shares, approximately 1.32% of the total number of issued CHO shares, an exchange filing said today. This is would increase Falcon's interest in CH Offshore from 29.1% to 30.42% (214,472,934 shares), if exercised.
“The offeror has considered the recent plunge in oil price, its impact on the outlook of the offshore and marine sector generally and the recent share price performance of other market players in the same industry as the Company, and has decided to extend the closing date of the offer to give [CHO] shareholders time to consider the offer amidst the current market conditions,” Falcon said today in an exchange filing.
Earlier this month, CHO shareholders rejected the S$247.4m ($186.2m) buyout bid placed in December by Falcon Energy Group through its subsidiary Energian.
Provenance Capital, CHO’s independent financial adviser, said “the financial terms of the offer, on balance, are not fair and not reasonable” in circular to CHO shareholders on January 8.
Falcon says its cash offer of S$0.495 ($0.369) per share is around a 15.2% premium over the unaudited consolidated net tangible asset per CHO share price recorded on December 31, 2014. [26/01/15]