Offshore staff
BREDA, the Netherlands – Dockwise says its subsidiary Dockwise White Marlin has entered into agreements to acquire around 54% of the shares in Dutch competitor Fairstar Heavy Transport.
Some of the agreements are unconditional and will be completed shortly. Others remain conditional, and completion is subject to approval at an AGM of financing these purchases by issuing new shares in Dockwise.
If Dockwise shareholders approve the plan, the company would then offer to acquire all remaining shares for cash.
Acquiring Fairstar’s fleet of transportation vessels, Dockwise says, would allow the group to better serve rapidly growing demand in the global oil and gas industry, and reduce Dockwise’s dependence on short-term upstream contracts.
CEO André Goedée said: “Fairstar’s growing position in downstream processing projects, including LNG module transportation developments such as Gorgon and Ichthys, is highly complementary to Dockwise’s existing market strengths. The transaction powerfully enhances our ability to provide our clients throughout the oil and gas industry with the diverse and project specific services they require.”
Fairstar’s boards, however, say the conditional share offer undervalues Fairstar’s business, and should be rejected.
They consider the Dockwise offer to be opportunistic and overlooking factors such as the replacement cost of the Fairstar fleet, and the value of the company’s order book.
CEO Philip Adkins said: “Fairstar has demonstrated remarkable success building an order book of almost $300 million with a modern, four-vessel fleet. We have been awarded a series of high value, multi-voyage contracts for energy infrastructure projects for onshore LNG, as well as offshore field developments. In every single contract award, we have competed against Dockwise and won…The Dockwise offer is a clear confirmation of their failure to compete at the high value segment of the market.”
4/25/2012
