Shareholders advised to reject STX OSV offerShareholders advised to reject STX OSV offer

Ernst & Young, independent financial advisors to the independent directors of STX OSV recommended shareholders reject the SGD1.22 per share offer made by the Italian shipbuilder.

“We are of the view that the offer price and the options proposal are, on balance, not attractive and there are generally insufficient compelling reasons to recommend the acceptance of the offer and the options proposal,” a circular to shareholders said.

Fincantieri had to make a mandatory general takeover offer after it acquired a 50.75% stake in Singapore-listed STX OSV from STX Europe. The shipbuilder offered the same price per share it paid STX Europe, which was lower than the trading value of the shares when the offer was made.

Ernst & Young said its analysis showed the offer price of SGD1.22 per share represented discounts ranging from 7.8% to 21.5% at historical time periods ranging from two years to one month. Fincantieri said it its offer document it did plan to increase the offer price.