Lamprell’s two suitors, Blofeld Investment Management and Al Gihaz Holding, have teamed up to make an offer for the company.
The two bidders have a combined stake of 44.24% in Lamprell. The offer would be for 9 pence per Lamprell share, with a bridge loan of $145 million.
Lamprell faces a serious financial squeeze in the near term as payments become due.
Lamprell has suspended trading. Its most recent share price close was 8.7 pence.
Lamprell’s board said it, and its advisor Investec Bank, said that should the offer become firm, it “would be minded to recommend” the sale to its shareholders. This would rely on various other factors, including the proposed bridge loan.
The bidders must now commit to a firm offer by the end of July 22 or declare that they will not make such a move.
The bidders have reserved the right to change the terms if Lamprell carries out any shareholder return, including a dividend. Lamprell said it would provide more information in due course.
Lamprell suspended its shares on July 1. The company said it had taken this step as it became clear it would not be able to publish its audited financial statement for 2021.
It said it intended to publish these as soon as possible, aiming to achieve this step before the end of the third quarter.
Lamprell revealed a potential bid from Al Gihaz and its CEO, Sami Al Angari, on July 1. Al Gihaz controls 19.19% of Lamprell’s shares.
Lamprell reported the potential offer from Blofeld, which owns 25.06%, on June 24. At the time, Lamprell said Blofeld’s offer was “highly problematic” and that it would leave Lamprell without a viable business. The offer “significantly undervalued” the business, it continued, and did not include bridge debt.