Eitzen Chemical ASA sent out a letter to its shareholders with a recommendation from the Board to accept the exchange offer from Team Tankers International (TTI) for the company’s move to Bermuda.
Team Tankers International is a company established by Eitzen Chemical with the sole purpose to move its operations to Bermuda.
“This is desirable as the new owners is substantially non-Norwegian and it is important for the group to operate under favorable, stable and predictable legislative and regulatory conditions, ” the letter read.
TTI sent out a combined prospectus and offer document to all shareholders in Eitzen Chemical on 30 January 2015.
The offer envisages an exchange of three Eitzen shares for one share in TTI in line with the Oslo Stock Exchange requirements for a stock price of at least NOK 10 per share.
“The offer is conditional on that 99.5% accept the Exchange Offer, and we need the shareholders support to reach this condition,” Eitzen said.
The acceptance period for the offer expires on 28 February 2015.
The 4th quarter of 2014 represented stronger earnings for Eitzen that were particularly evident towards the end of the quarter, and 2015 has started on a positive note, the company said. Eitzen is undergoing a restructuring process to cut mounting losses from last year.