By Dominic Chopping
Subsea 7 has pulled its offer for offshore vessel provider DOF Group days after launching the bid, it said Monday.
The Norwegian offshore energy services firm on Thursday made a bid that valued DOF at around 5.63 billion Norwegian kroner ($533.3 million), offering NOK35 a share comprised of NOK7 in cash and NOK28 in newly-issued shares.
The deal would have given DOF shareholders an 11.5% stake in Subsea 7 while the company also committed to returning NOK250 million a year to shareholders for five years from 2025.
However, the DOF board immediately rejected the bid, saying the offer was too low, questioning the ability to successfully close a deal, and expressing its wish to push on with a planned initial public offering.
DOF recently completed a comprehensive restructuring and announced an IPO at NOK28 a share ahead of listing in Oslo–a move backed by billionaire shipping magnate John Fredriksen who has committed to invest NOK250 million.
“Subsea 7 confirms today that its offer, dated 15 June 2023, for the entire share capital of DOF Group expires at the end of today. This follows the rejection of the offer by the board of DOF Group,” it said in a statement.
“Subsea7 is not prepared to amend its offer without the board of DOF Group expressing willingness to open a constructive dialogue.”
Write to Dominic Chopping at dominic.chopping@wsj.com
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