Marine Link
Saturday, January 20, 2018

Takeover Bid News

Holyman Rejects Takeover Bid

Directors of shipping and transport group Holyman Ltd. unanimously rejected a revised takeover bid from tugboat operator Adsteam Marine Ltd., saying it was still below fair value. "The revised bid continues to undervalue the Holyman business and falls well short of fair price for control," Holyman managing director James Bryant said. The new Adsteam bid, which was upped to 50 cents a share from 45 cents, was still significantly below a valuation prepared by SG Hambros which puts Holyman at between 60 and 89 cents a share, Bryant said.

Star Surprises NCL With Takeover Bid

Singapore-listed Star Cruises Plc launched a surprise takeover bid for Norway's NCL Holding ASA on Dec. 17, after U.S. giant Carnival Corp. bowed out of a battle for control. Star offered 35 Norwegian crowns ($4.38) a share for NCL, valuing it at about 8.73 billion Norwegian crowns ($1.10 billion). Star will also assume NCL debts of about six billion crowns. The bid was inevitable after Star lifted its shareholding in NCL above 40 percent late on Dec. 16, the threshold above which a formal takeover has to be launched under Norwegian law. NCL officials said they were surprised by the bid after Star had assured them only a day earlier that it had no such plans.

N.Hydro Says To Present Saga Bid Next Week

Norsk Hydro is reportedly planning to present a formal takeover bid for oil firm Saga Petroleum next week.

Kvaerner Says It Won't Raise Takeover Bid

Anglo-Norwegian industry group Kvaerner said on Friday that it would not raise or extend its $725 million takeover bid for oil and gas services firm Aker Maritime Kvaerner's offer of 0.79 new Kvaerner shares for each Aker Maritime share expires today, at the close of the Oslo bourse. Aker Maritime has rejected the bid as too low. Kvaerner chairman Christian Bjelland reportedly told shareholders at a meeting today that the company's bid remained unchanged. The company had called the meeting for shareholders to vote over a controversial proposal to lower the threshold for mandatory offers to 30 percent from 40. A majority supported a lower threshold, company officials said after the meeting.

Holyman Rejects Adsteam Takeover Offer

Directors of shipping and transport group Holyman Ltd. unanimously rejected a revised takeover bid from tugboat operator Adsteam Marine Ltd., saying it was still below fair value. The new Adsteam bid, which was upped to 52 cents a share from 45 cents, was still significantly below a valuation prepared by SG Hambros, which puts Holyman at between 60 and 89 cents a share.

Holyman To Back New Lang Bid

Holyman Ltd.'s board of directors will reportedly recommend a fresh $.71 a share takeover bid from Lang Corp Ltd. Lang Corp increased its cash offer from $.61, topping a rival $.66 a share bid from Adsteam Marine Ltd. The new bid values Holyman at about $82.5 million, compared with just $53.5 million at Adsteam's original bid price of $.46.

NCL Retains Financial Advisers

NCL Holding ASA appointed Orkla Finans and Morgan Stanley as financial advisers following a takeover bid from Carnival Corp. Carnival, the world's largest cruise operator, has offered 30 Norwegian crowns per share for NCL, the fourth biggest operator. Miami-based NCL has rejected the bid as too low and has hinted that rival bids might be in the pipeline.

Carnival To Allow NCL Bid To Expire

Carnival Corp. plans to allow its tender to buy Norwegian line NCL Holding to expire on the December 22 deadline without making any adjustments. Carnival had bid 30 crowns per share for NCL, which had consistently rejected the bid as too low. Earlier on Thursday, Star Cruises Plc said that it had bought 39.3 percent of NCL, just below the 40 percent limit before a formal takeover bid would have to be launched under Norwegian law.

Northrop Grumman To Comply With DOJ's Information Request

Defense contractor Northrop Grumman Corp. said on Tuesday that it will comply with a request from the Department of Justice for additional information on its proposed takeover of warship-builder Newport News. The company said the Department of Justice made the request on Monday under antitrust regulations. Northrop Grumman last month commenced an exchange offer for each of Newport's outstanding common shares for $67.50 in cash or stock. Earlier this month, Newport News board had voted in favor of a $2.1 billion takeover bid from rival General Dynamics.

CCL: Would Seek Oslo Listing With Successful NCL Bid

Carnival Corp. would seek an additional listing on the Oslo stock exchange if it succeeded in its bid to take over Norwegian cruise firm NCL Holding ASA. Carnival last week offered 30 crowns per share for NCL in a hostile takeover bid which valued NCL at 7.15 billion crowns ($884 million).

Saverco Makes Squeeze-out Bid on CMB

CMB and Saverco announce that on December 21, 2015, at the closing of the acceptance period of the reopening as a simplified squeeze-out of the voluntary public takeover bid in cash made on CMB by Saverco, a total of 1,270,753 shares were tendered into the simplified squeeze-out bid. The remaining 208,921 shares which were the subject of the bid and which were not tendered into the bid, are deemed to have been transferred to Saverco by operation of law. As a result, following the effective transfer of ownership of the shares tendered into the simplified squeeze-out bid and the transfer by operation of law pursuant to article 43, section 3 of the Royal Decree on Public Takeover Bids, Saverco (together with its affiliates) shall hold a total of 34,959,000 shares (or 99.88 percent) in CMB.

Norway's Frontline Finally Gets Sweden's ICB

A two-year fight for Swedish tanker company ICB Shipping ended Thursday in victory for Norway's Frontline -- but only after four of 12 ICB tankers are sold to a new group set up by key ICB players. An agreement between Frontline, ICB and ICB's main shareholder, Greek shipowner John Angelicoussis, values ICB at about 4.6 billion crowns and ends a stalemate over ownership. Bermuda-registered Frontline launched a hostile takeover bid for ICB in September 1997 with the aim of creating one of the world's largest quoted tanker companies, part of the consolidation emerging in the highly fragmented tanker industry.

Saga Says Capable of Staying Independent

Saga Petroleum is reportedly fully capable of remaining independent if shareholders reject a takeover bid by industrial group Norsk Hydro ASA, according to company reports.

Avondale Prepared To Accept Revised Litton Offer

Avondale Industries Inc. will reportedly accept an increased cash takeover bid from Litton Industries Inc., forgoing a previous all-stock merger agreement with Newport News Shipbuilding Inc.

Pacific Carriers Is Propositioned by Hovert Investments

Hovert Investments Pte Ltd, a unit of Kuok (Singapore) Ltd, has made an unconditional offer for the shares of shipping company Pacific Carriers Ltd. Hovert accumulated a controlling stake of 56.56 percent on Friday, paying an offer price of S$1.25 per share for 152.7 million shares and an enhanced offer price of S$1.40 per share for 16.8 million shares at the close of business. Although the unconditional offer was at S$1.25 per share, Hovert paid $1.40 per share for the stake of shareholders "presumed to be acting in concert with the offerer" in its takeover bid for PCL.

NCL Recommends Joint Bid To Shareholders

NCL Holding abandoned hope of any new takeover bids and recommended that shareholders accept an offer by Malaysia's Star Cruises and U.S. Carnival Corp. Star and Carnival, which gave up their rivalry to join forces to make a 35 crowns per share offer valuing NCL stock at about $1.1 billion, said they had a controlling stake of 53.8 percent after buying 4.3 percent on Thursday. "The board recommends sale," the NCL board said in a brief statement to the Oslo bourse, marking the end of an often bitter struggle to encourage a further round of bids. Shares in NCL, the world's fourth largest cruise group, closed at 35 crowns on the Oslo bourse, down 0.2 from Wednesday, as the last shred of hope for a new takeover battle vanished.

NCL Turns Down Carnival's $1.7B Takeover Bid

NCL Holding ASA flatly rejected a 30 crown ($3.72) per share takeover offer from Carnival Corp, saying it undervalued the group's potential. NCL officials said it would be a waste of time to even meet Carnival given the offered price. Carnival, the world's largest cruise operator, whose lines include Cunard and Holland America, launched the surprise bid for NCL, the fourth largest operator, on Dec. 1. The bid values NCL at $884 million. Carnival would also assume NCL debts, raising the value of the transaction to $1.7 billion.

Thomson-CSF Eyes Vosper

French defense group Thomson-CSF plans to bid for British warship builder Vosper Thorneycroft, which in turn is preparing a bid for U.K.-based Hunting Engineering, according to press reports. Officials of Thomson-CSF, which recently acquired defense electronics company Racal Plc, said the company could bid up to 15 pounds ($22.46) per share, valuing Vosper at $754.6 million. The takeover bid, which is reportedly welcomed by the British government, would ensure Thomson-CSF a slice of a multi-billion dollar contract to build new frigates for Britain's Royal Navy. Vosper was reportedly mulling a bid for the defense arm of British-based Hunting Engineering, a maker of weapons integration systems for Apache attack helicopters along with engineering business in the oil industry.

Aker Yards Weigh STX Bid

Aker Yards shipbuilding said that a 1.3-billion-dollar bid by STX of South Korea underrated the company's potential, but advised shareholders to accept against a background of weak results, AFP reported. The group reported a temporary slowdown of cruise-liner construction and downgraded its profit margins for the full year. And it said that the takeover bid, worth 6.8 billion kroner (850 million euros), although undervaluing the group's potential, was worthy of serious consideration in the current climate. The group reported a second-quarter net loss of 135 million kroner (16.9 million euros), its third quarterly loss running, from a profit of 200 million euros in the second quarter of last year. But sales surged by 31.4 percent to 7.9 billion kroner, the company said.

Frontline Surges 5% On Solid Results

Shares in Norwegian tanker group Frontline jumped 4.8 percent on the back of strong first quarter results and renewed confidence in the tanker market, analysts said. Frontline shares were up 9.0 Norwegian crowns ($0.990) amid heavy trading, after hitting a year high of 198 earlier in the session. The share had a year low on February 1 at 102.50 crowns. The total index at the Oslo bourse was up 1.3 percent. "Firstly, the increase is driven first by the first-quarter results Frontline presented yesterday, which were very good and above expectations," Ole Richard Hammer, an analyst with Pareto, said. "Secondly, we are at the threshold of summer, which is usually a good period in the tanker market and adds to the confidence investors have in Frontline." he said.

CMA CGM Keeps Buying NOL Shares

Pic: Neptune Orient Lines

French liner giant CMA CGM has acquired last week a total of 2.26 million shares in Neptune Orient Lines (NOL), six months before it is scheduled to make good its S$3.4 billion takeover bid for the Singapore-listed liner, reports Business Times. It acquired 1.33 million (0.05 per cent stake) at $1.233 apiece) and 930,700 shares (0.04 per cent) at S$1.235 each on Jan 4 and Jan 5 respectively. This information was revealed by CMA CGM's financial advisers comprising the Singapore branches of BNP Paribas and The Hongkong and Shanghai Banking Corporation as well as JP Morgan.

COSCO 'bidding' for Orient Overseas

Photo: Orient Overseas Container Line Limited

Chinese conglomerate Cosco Group is in talks to acquire smaller rival Hong Kong-based rival Orient Overseas Container Line Co. ( OOCL), Chinese media outlet Caixin reported quoting people familiar with the matter. The state-owned China COSCO  will compete with Evergreen Marine Corp. from Taiwan and France’s CMA-CGM SA in the takeover bid, but COSCO was more likely to win the deal, a source from COSCO told Caixin. A representative at COSCO Shipping's media relations department said the company wasn't aware of the bidding.

Merkel Says Siemens-Alstom Is Above All Corporate Decision

Chancellor Angela Merkel

Chancellor Angela Merkel said on Saturday that the German government would positively accompany a tie-up between Siemens and Alstom but said that any link would be first and foremost a corporate decision. Speaking at a news conference with French President Francois Hollande in the Baltic town of Stralsund, Merkel said the German government, at least, does not want to intervene in the corporate decision-making. She said Siemens first has to come forth with an offer. Alstom is the target of a takeover bid from U.S. giant General Electric.

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News