Falcon Energy’s acquisition bid was rejected earlier as the original offer price of SGD0.495 per share was deemed too low.
On Monday, Chuan Hup, which controls 24.7% of OSV operator CH Offhsore, has agreed to accept the revised offer from Falcon Energy. In addition, Chuan Hup director Peh Kwee Chim, who owns a 6.8% stake in CH Offshore, has also agreed to the offer.
As of 9 February Falcon owned 30.5% of the shares of CH Offshore and once the irrevocabble undertaking by Chuan Hup and Peh is taken up by 16 February it will own over 50% making the offer unconditional.
Chuan Hup believed that the proposed disposal of its ownership in CH Offshore is an “opportunity for the company to realise the value of its remaining stake in CH Offshore at a significant premium to its investment costs, during challenging economic conditions for the oil and gas industry as whole.”
Singapore-listed Chuan Hup said it expects to realise a gain of approximately $17.96m from the proposed disposal.
Falcon Energy has set a deadline of 27 February for other shareholders to accept the higher offer. The takeover bid was first announced in December 2014.
CH Offshore operates a fleet of 15 AHTS vessels of which nine are wholly-owned and the remaining six are co-owned. Falcon Energy, on the other hand, is primarily engaged in providing services from initial exploration and drilling stage to production and post-production stages.
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