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Lamprell consortium extends offer, urges shareholders to accept

Image: Youtube Rig in Lamprell's UAE yard
The consortium seeking to finalise the takeover of UAE fabrication and engineering specialist Lamprell has urged shareholders to accept its offer.

The Thunderball Group, an entity created by Blofeld Investment Management Limited, AlGihaz Holding and other individuals, claims to own 45.2% of Lamprell’s shares, and to have pledges of a further 5.4%, bringing the total to just over 50%, the threshold required for “satisfaction of the acceptance condition.”

The 21-day offer period under the takeover code passed on 2 September, however, the offer remains open for acceptance.

“Lamprell shareholders are strongly encouraged to accept the offer, which remains open for acceptance,” a statement said. “The delisting and re-registration of Lamprell as a private limited company would significantly reduce the liquidity and marketability of … Lamprell shares … [not owned by the consortium].”

Thunderball aims to delist Lamprell from the London Stock Exchange and will seek shareholder approval at an Extraordinary General Meeting on 28 September.

The offer values the company at a paltry $42.7m today, less than two years after it claimed a bid pipeline of $6bn.

Commenting on the takeover bid Fazel Fazelbhoy, Synoff CEO, said he did not think Lamprell had too many choices at the moment. "Clearly, they need a cash injection and a sale is probably the only way to attract the kind of investment that they need."

Lamprell said in August its net loss for 2021 widened to $60m compared to a $53.4m loss in 2020. According to a Lamprell filing, in July, its board recommended accepting a takeover offer from Blofeld and AlGihaz, which included a $145m bridge financing loan.

In June, Lamprell faced funding requirements of $75m over the next two months, after missing an initial $26.4m milestone repayment on $45m UAE Export Credit Agency-backed revolving trade loan, reports said.

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