KPMG backs Fincantieri’s privatisation of Vard

Italian shipbuilder Fincantieri has received recommendation from independent financial adviser KPMG Corporate Finance to take Singapore-listed Vard Holdings private.

Fincantieri is offering SGD0.24 ($0.17) per share for the 44.37% of OSV builder Vard’s shares that it does not already own.

“Having carefully considered the information available to us (…), we are of the opinion that the offer is fair and reasonable from a financial point of view. Accordingly, we advise the independent directors to recommend shareholders to accept the offer,” KPMG said.

The offer price represents a premium of approximately 11.63%, 24.35% and 29.73% over the volume weight average price (VWAP) per share for the one-month, three-month and six-month periods up to and including the last trading day, respectively, Vard said in a circular to shareholders.

“Amidst challenging market conditions in the oil and gas industry, the offer therefore represents a cash exit opportunity for shareholders to liquidate and realise their entire investment at a premium to the prevailing market prices, without incurring other brokerage and trading costs,” the circular said.

It added that a delisting from the Singapore Exchange (SGX) would allow Vard to save on listing expenses and costs, and a full integration with Fincantieri would give the shipyard improved access to funding.

Vard’s independent directors stated: “The independent directors concur with KPMG CF’s assessment of the offer and its recommendation thereon (…). Accordingly, the independent directors recommend that shareholders accept the offer.”

Posted 15 December 2016

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Lee Hong Liang

Asia Correspondent

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