Fredriksen Ups Osprey Offering

Thursday, January 11, 2001
Norway's John Fredriksen raised his offer price for Singapore's Osprey Maritime by 12.5 percent in a move seen likely to result in a management change and possible de-listing of the group. Fredriksen, through his privately held World Shipholding Ltd., lifted his offer from S$1.00 to S$1.125 per share for the 38.85 percent of the tanker group he does not already own. Osprey shares ended up 11 percent at S$1.11 after hitting a high of S$1.16. Volume was thin at 660,000 shares. After the market close, the firm announced that its board member Charles Klotz had resigned effective January 10. It did not give a reason. The higher offer comes after criticism from Osprey management that World's initial offer undervalued the company. World's offer at S$1.00 was a steep discount to Osprey's net asset value of S$1.62 per share. World has said it plans to turn the Singapore group into a gas transporting company and sell other non-core shipping assets. World, through its adviser DBS Bank, said in a statement it would also raise the price for redeemable cumulative preference shares from S$0.5435 to S$0.6115. The oil transportation giant gave no reason for the increased offers. World made a formal bid for Osprey on December 4 after breaching Singapore's takeover trigger of 25 percent. It said on Thursday it had received irrevocable undertakings from other major shareholders to accept the revised offers, including Osprey chairman Timothy Cottew and Indonesian-linked groups PT Samudra Petrindo Asia. This would bring World's stake in Osprey to 80.67 percent from about 61.15 percent. The offer is open until January 26. While World has not said it plans to privatize and de-list Osprey, some analysts speculate the move could be on the cards. "They are going to privatize it. It's quite clear," said a shipping analyst at a Singapore bank securities firm. He said it was likely World could boost its holding to 90 percent, after which it could force the remaining shareholders to sell their stakes and take the firm private. "There is no reason for Fredriksen to keep a listing status in Singapore. He could inject it into his listed vehicle in Europe with better valuations," the analyst said. Osprey management has been releasing information on the group to show minority shareholders that World's initial offer of S$1.00 "significantly undervalues" the company. Osprey said it expected to swing to a net profit of US$108 million for the year ended December 31 from a net loss of US$191 million in 1999. Its estimated net tangible assets per share as of December 31 stood at 93.68 U.S. cents, which works out at about S$1.62. - (Reuters)
Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

USCG Rescues Disabled Fishing Vessel

A fishing crew is back on land today after a fouled anchor line stranded them about 115 miles east of Gloucester, Massachusetts, Saturday. Initially, the

MacGregor Inks Deal with Grupo CBO

MacGregor, part of Cargotec, has secured a contract with the Brazilian shipowner and shipbuilder Grupo CBO. The contract is to supply Triplex deck handling equipment

NOAA’s National Saltwater Recreational Fishing Policy Opposed

Recently, NOAA Fisheries released the implementation plan to support the latest National Saltwater Recreational Fishing Policy. The policy, announced at the

Finance

Royal Caribbean Cuts Profit Forecast

Royal Caribbean Cruises Ltd cut its adjusted profit forecast for the year, citing a jump in fuel prices since its January forecast and a strong dollar.   Shares

Baltic Index Up Slightly on Higher Rates for Large Vessels

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose slightly on Monday due to firmer rates for the large vessel segments.

ExxonMobil President Seeks Swift Action on US LNG Exports

The United States is at risk of losing economic opportunity and the ability to solidify its role as a global leader in energy production unless the government moves

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Repair
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1454 sec (7 req/sec)