Falcon Energy pursues takeover bid for CH Offshore

In a statement to the Singapore Exchange, Falcon Energy said investors will now have until 9 February to decide if they wish to accept Falcon’s offer of SGD0.495 ($0.37) per share to acquire CH Offshore.

The latest offer price remains unchanged from the previous price, which represents a 6.45% premium over the last closing price of CH Offshore shares before the takeover bid was announced.

Energian, subsidiary of Falcon Energy, is currently the largest shareholder of CH Offshore with a 29.7% ownership after acquiring the stake from Malaysia’s Scomi Marine Services in April 2010.

“The offeror has considered the recent plunge in oil price, its impact on the outlook of the offshore and marine sector generally and the recent share price performance of other market players in the same industry as the company, and has decided to extend the closing date of the offer to give shareholders time to consider the offer amidst the current market conditions,” Falcon Energy said.

Due to the sharp decline in crude oil prices in recent months, the OSV market has face challenges of lower charter and utilisation rates.

Falcon Energy suggested that shareholders should consider the risk that if the offer is not successful, the current market price of the CH Offshore shares may “fall to levels before the announcement of the offer.”

CH Offshore had rejected Falcon Energy’s takeover bid, agreeing with its appointed financial adviser Provenance Capital that the offer are “not fair and not reasonable”.