Lamprell board keen to endorse firm takeover offer

Following last month’s non-binding indicative cash offer from a shareholder for a potential takeover of UAE’s Lamprell, the company has now received a combined offer, throwing another one of its shareholders into the mix.

On 24 June 2022, Lamprell received a non-binding indicative cash offer from Blofeld Investment Management, a 25.06 per cent shareholder, regarding a possible offer to acquire the entire issued and to be issued share capital of Lamprell.

However, as the offer was at a very significant discount to the prevailing share price, Lamprell said at the time that any acceptable offer would need to include an interim funding solution or bridge financing. As a result, the parties continued working together to try to reach a workable solution by way of an updated offer, which would provide a solution to the immediate liquidity needs of the company.

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In its update on Tuesday, Lamprell revealed that it has received a combined non-binding indicative all cash offer from Blofeld Investment Management and Al Gihaz Holding Company to acquire the entire issued and to be issued share capital of Lamprell. The joint bidders have a combined shareholding of 44.24 per cent in Lamprell.

According to Lamprell, the joint bidders are working as fast as possible to put forward the possible offer for the entire issued and to-be-issued share capital of Lamprell at a price of 9 pence per ordinary share which also includes a proposed secured bridging loan with a peak aggregate amount of $145 million.

Lamprell’s board has concluded that, should a firm offer be made on the same financial terms as the possible offer, it would be minded to recommend it to Lamprell shareholders, subject to the agreement of other customary terms and conditions and subject to agreement of the proposed bridging loan.

It has been noted that there can be no certainty that any offer for the company will be forthcoming, nor any certainty as to agreement on the interim financing solution with the joint bidders.