Falcon to make general offer for CH Offshore

Singapore

OFFSHORE marine and resources player Falcon Energy Group (FEG) intends to make a voluntary conditional cash offer for the remaining 70.93 per cent stake in CH Offshore Ltd (CHO) that it does not already own for S$247.5 million or 49.5 cents a share. The group, the largest shareholder of CHO, has an existing interest of 29.07 per cent that it acquired from Scomi Marine Services in February 2010 for S$143.5 million or 70 cents per share.

FEG believes that by increasing its control of CHO, it will be able to explore opportunities to unlock synergies in the CHO group's businesses. "We have previously stated that we plan to acquire more vessels to broaden the number of vessel types and to cater to a broader group of customers," said FEG chairman and CEO Tan Pong Tyea, who is also non-executive chairman of CHO. "The acquisition of statutory control in the CHO Group which has a complementary business is in line with our strategy."