Otto Marine Gets Acquisition Offer, Extends Trading Halt
After last week’s reports that an undisclosed party was looking to buy Singapore’s offshore marine company Otto Marine Limited, the company said that it received a proposal from RHB Securities Singapore Pte Ltd (RHB), the financial adviser to the potential offeror.
Namely, Otto Marine received a proposal from RHB in relation to a de-listing, which carries certain conditions.
The company decided to extended its trading halt to consider the offeror’s proposal, as it had requested and received approval from the Singapore Exchange Securities Trading Limited for an extension of the trading halt by 2 market days.
During the period, the company said it would convene a board meeting to consider the proposal and to make an announcement on the matter.
The move follows a prolonged period of headwinds in the offshore oil and gas industry, as Otto Marine saw a decrease in external revenue by 31.3 percent to USD 244.4 million in 2015, taking into account its three businesses – shipbuilding, chartering and subsea.
The company earlier said that, as 2016 is expected to be yet another difficult year amid uncertainties and prolonged weak demand, it has opted for measures to reduce management and cost structure.