Boskalis Announces Intended Offer on Dockwise

Boskalis Announces Intended Offer on Dockwise

Boskalis group has announced its intended offer on Dockwise shares for a total consideration of EUR 682 million.

The combination of the two companies provides new strategic opportunities for accelerated growth of the offshore services. The addition of Dockwise’s activities to the Boskalis group will create a service provider with an extensive package of services for clients in the oil and gas sector. The new combination will be in a better position to serve clients with the optimal deployment of people and equipment under increasingly complex circumstances worldwide. Combining the vessels of Dockwise with the project management expertise and engineering know-how of Boskalis will also enable a fast track implementation of the strategic ambition to execute Transport & Installation (T&I) projects. The two companies are currently jointly tendering for a large T&I project in Australia. Furthermore, Boskalis sees potential for a broader deployment of the vessels of Dockwise within the group for the benefit of dredging-, offshore- and salvage projects. The acquisition will lead to a strong increase of the EBITDA and will be earnings per share accretive.

Peter Berdowski, CEO Boskalis

“Combining Boskalis and Dockwise offers advantages and new opportunities for both companies. The combination creates a world class maritime player, well positioned for the offshore energy market. This step fits in our growth strategy aimed at broadening our service offering for clients in the oil and gas sector. We are convinced that the addition of Dockwise to our group will structurally create value, as we have also demonstrated with SMIT. Furthermore, the addition will result in a strong increase of our EBITDA.”

As a result of the complementary nature of the activities, the cultural fit and the development of the markets in which both companies operate, the transaction is expected to result in no or only limited negative consequences for employment. Bringing the activities together will in fact create a stronger company for the future with improved growth prospects, presenting extended career and development opportunities to employees of both companies.

The offer price of EUR 17.20 per share (cum dividend) represents:

  • a premium of approximately 61% relative to the closing price of EUR 10.66 per share of Dockwise as per 23 November 2012;
  • a premium of approximately 35% relative to the average closing price of an ordinary share of Dockwise during the last 3 months and
  • a premium of approximately 30% relative to the average closing price of an ordinary share of Dockwise during the last 12 months.

Based on the offer price of EUR 17.20 per ordinary share in cash (cum dividend), the offer values Dockwise at EUR 682 million with an enterprise value of approximately EUR 1.2 billion.

The main shareholder of Dockwise, HAL Investments B.V., has expressed its support for the transaction and has irrevocably committed to tender its shares in Dockwise under the intended offer. Therefore, 31.7% of the outstanding ordinary shares is already committed to the intended offer.

Boskalis and Dockwise have had initial discussions with respect to the proposed transaction, in which Dockwise expressed a positive attitude towards the strategic rationale of the proposed business combination. Boskalis fully appreciates that the Dockwise Board of Directors will need to evaluate all components of the proposed transaction before taking a definitive position in respect of the intended offer. Boskalis has invited Dockwise to meet at short notice with a view to further discuss the proposed offer in order to come to a transaction that is supported and recommended by the Board of Directors of Dockwise.

The commencement of the offer will be conditional on (i) satisfactory outcome of confirmatory due diligence and (ii) receipt of confirmations in respect of committed financing. Furthermore the offer, when made, will be subject to conditions precedent for transactions of this nature, including an acceptance threshold that warrants adequate consolidation and control, receipt of antitrust and other regulatory clearances, Boskalis shareholder approval and “no material adverse change” (no MAC) having occurred.

The intended offer and the refinancing of existing facilities will be funded through a mix of existing cash resources and new senior debt facilities. As part of the financing, Boskalis also expects to issue up to a maximum of ten percent new equity. Following the acquisition, the financial position of Boskalis will continue to be strong.

[mappress]

Boskalis, November 26, 2012; Image: Dockwise