We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Thu 19 May 2011 05:39 PM

Font Size

- Aa +

Lamprell to acquire Dubai’s Maritime Industrial Services

UK-based company will use a rights offer, debt and cash to acquire the rig-maker

Lamprell to acquire Dubai’s Maritime Industrial Services
offshore oil rig

Lamprell Plc will use a rights offer, debt and cash to
acquire Dubai-based rig maker, Maritime Industrial Services Co, the company
said in a statement Thursday.

The 3-for-10 rights issue will be offered at 232 pence per
share to raise as much as £139.4m ($225m), the Douglas, Isle of Man-based
oil-and-gas-rig builder said. The rights offer will be fully underwritten by
J.P. Morgan Cazenove, HSBC and Merrill Lynch International.

“This transaction will rapidly create value for our
shareholders,” Lamprell chief executive officer Nigel McCue said in a
statement. “We can demonstrate the merits of bringing together these two
businesses both through new business opportunities and operational and
financial synergies.”

The acquisition represents growing interest in the offshore
drilling industry in the past year as oil prices have surged. Earlier this week
American miner Joy Global Inc agreed to buy LeTourneau Technologies Inc. for
$1.1bn.

MIS rose as much as 26 percent to 37.7 kroner in Oslo, the
most in 14 months, while Lamprell gained as much as 15 percent to 405 pence in
London, the biggest jump since September.

“The return on invested capital in the first full year of
ownership will at least match Lamprell’s cost of capital and exceed it
thereafter,” Lamprell said in the statement.

The consideration for each share under the offer will be 38
kroner payable in cash, valuing the share capital of MIS at about 1.87 billion
kroner ($337m). The MIS board recommended that shareholders accept the offer,
it said in a statement.

Arabian Business: why we're going behind a paywall

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.