Kristian Siem’s Subsea7 pulls DOF takeover offer with ‘constructive dialogue’ broadside at the board

Kristian Siem’s Subsea7 claims to be abandoning its pursuit of IPO hopeful DOF Group just days after launching a takeover bid.

Subsea7 on Friday tabled an offer for DOF, which is looking to list with John Fredriksen as its cornerstone investor.

Siem is a vocal consolidator but saw his approach immediately knocked back by DOF’s board, with investors anticipating a further bid would be upcoming.

In a statement on Monday, Subsea7 hit back at DOF’s board being unwilling to enter discussions.

“Subsea7 is not prepared to amend its offer without the board of DOF expressing willingness to open a constructive dialogue,” Subsea7 said on Monday.

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The contractor on Friday 16 June made a proposal worth Nkr 35 ($3.3) per share to acquire the entire issued share capital of DOF, which is seeking a listing on the Oslo stock exchange.

The initial offer, which Subsea7 revealed late last Friday, included NOK 7 in cash and NOK 28 in newly issued shares of Subsea7 per each DOF share, representing a 25% premium of DOF’s targeted initial public offering priced at NOK 28.

Subsea7 said that “major shareholders” in DOF Group have expressed their support for the offer and the rationale driving the takeover bid. It added that the DOFG board “has refused to engage” on the bid.

It believes the combination with DOF would be beneficial to shareholders at both companies, including access to a larger fleet and the opportunity to drive higher returns by tapping into new developments in subsea and offshore wind markets.

Commenting on the takeover bid, it said there remained “significant uncertainties as to whether a transaction would be successfully completed based on the expressed interest”.

DOF chairman Svein Harald Oygard told Upstream’s sister publication DN on Friday: “We are in the middle of raising capital and take it as a compliment that Subsea7 wants to buy us.”

(More to follow…)