Subsea 7 (OSLO: SUBC) has temporarily paused its pursuit of Norwegian subsea services firm DOF Group (OSLO: DOF).
The Luxembourg-registered company says it will not push forward with its offer unless DOF’s board is willing to engage in “constructive dialogue”.
On Friday Subsea 7 revealed it had failed in an initial bid to acquire DOF Group (OSLO: DOF), whose DOF Subsea branch has a base in Aberdeen.
Under the terms of the offer, tabled Thursday, DOF equity holders were offered NOK 35 a share, comprised of NOK 7 in cash, and NOK 28 in newly-issued Subsea 7 shares.
Subsea 7 has offered holders of DOF equity NOK 35 per share, comprised of NOK 7 in cash and NOK 28 in newly-issued shares in Subsea71.
The offer for the entire share capital of DOF expires at the end of today, with Subsea 7 not planning to pursue it further.
In an update the energy services giant said: “While major shareholders in DOF Group we have contacted have expressed support for the industrial rationale for the combination and the attractiveness of the Subsea7 equity element of the offer, the board of DOF Group has refused to engage with Subsea7 on this offer.
“Subsea7 is not prepared to amend its offer without the board of DOF Group expressing willingness to open a constructive dialogue. Subsea7 reiterates its conviction in the strategic rationale, industrial logic and the attractiveness of Subsea7 equity as part of the offer, which it believes is in the best interests of both companies’ shareholders.”
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