Offshore wind vessel provider Gulf Marine Services (GMS) has received a takeover proposal from Dutch outfit Seafox International.
Jack-up vessel supplier Seafox issued the proposal to GMS “in light of recent trading and share price volatility in relation to the company”.
The GMS board received the non-binding proposal on 26 April, which is being reviewed with the company’s financial advisers.
Seafox’s proposal details a “possible cash offer for the entire issued and to be issued share capital of GMS” by a wholly owned subsidiary of Seafox, at a value of $0.09 (€0.08) per GMS ordinary share.
Over the past year, GMS has “completely overhauled” its board and management team, made “material reductions” in its cost base and delivered “significant new contract wins”.
GMS said agreement-in-principle has also been reached with lenders on the key terms of the restructuring of its bank debt, which will provide a firm platform to move the business forward through 2020 and beyond.
GMS said its board remains “fully confident” in the future success of the business.
At GMS has advised shareholders to take no action.
Seafox said: “In the event that an offer is made on the same terms as the proposal or otherwise in US dollars, Seafox’s intention is to procure that a facility be made available under which GMS shareholders would be able to elect to receive cash consideration in pounds sterling at the applicable market exchange rate on the latest practicable date for fixing such rate prior to the relevant payment date.”
GMS’s preliminary results for the year ended 31 December 2019 will be announced on Friday 1 May 2020.
In September 2019 GMS signed a formal waiver agreement with its banks to provide the company with a rollover of its existing $25m working capital facility and access to bond facilities to “underpin liquidity and support the growth of its business” until the end of last year.