DOF rejects Subsea 7 merger offer

DOF rejects Subsea 7 merger offer

Photo: DOF

Subsea services provider Subsea 7 confirmed earlier this week that its offer for the entire share capital of Norwegian offshore support vessel operator the DOF Group (DOFG) has expired and will not be extended.

Subsea 7 said this expiration follows the rejection of the offer by the board of DOFG on June 16, 2023.

The company said the board of DOFG concluded that NOK35 (US$3.26) per share is below the equity valuation expectation of the board and its current shareholders.

Subsea 7 was guided in its offer by the pricing of the new share issue through an initial public offering at NOK28 (US$2.61) per share, as well as the pricing of shares allocated to the DOFG chairman and directors at NOK23 (US$2.14) per share on June 8, 2023.

Subsea 7 said that while major shareholders in DOFG who have been contacted have expressed support for the industrial rationale for the “combination and the attractiveness of the Subsea 7 equity element of the offer,” the board of DOFG has refused to engage with Subsea 7 on this offer.

Subsea 7 said it is not prepared to amend its offer without the board of DOFG “expressing willingness to open a constructive dialogue.”

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