Board of Directors of Flex LNG issued a statement regarding the mandatory offer from Geveran Trading to acquire all shares in the company not already owned by Grveran.
“ The Board decided to advise its shareholders not to accept the offer, which was priced at NOK 8.00 per share, as it finds that the offer is below the company’s asset value estimates, ” Flex said in a statement.
Flex board has evaluated the terms of the offer and obtained a fairness opinion from Arctic Securities as advisor to the board.
“The Offer Price is below what the Board considers to be the historical average acquisition premium in public cash offers in the Norwegian market,” according to the statement.
On the other hand, statement notes that the trading prices of the company’s shares before the offer was announced on 22 October have been below the offer price, at times significantly below.
Based on an overall assessment, Flex LNG board concluded that the offer price is at the very low end of what it considers to be the fair market value of the company and the board has concluded not to recommend that the company’s shareholders with a long-term investment horizon accept the offer.
Flex LNG board did add that this offer represents a liquidity event for shareholders looking to monetize their position in the company.
1 Norwegian krone = 0.140292 USD
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LNG World News Staff; Image: Flex LNG