Italy's Fincantieri offers to take Vard private

ITALY'S incorporated shipbuilding group Fincantieri Group has set out to take Singapore-listed subsidiary Vard Holdings private at S$0.24 per share. Vard has requested for a trading halt before Monday trading hours.

In a voluntary conditional cash offer issued on Sunday through the Singapore branch of Credit Suisse, Fincantieri indicated the integration of Vard into its parent group following the latter's delisting will provide for more management flexibility which is crucial under unfavourable oil and gas market conditions.

The offer price represents a premium of about 11.63 per cent, 24.35 per cent and 29.73 per cent over the volume weighted average price per share for the one-month, three-month and six-month periods up to and including Nov 11, 2016.

Fincantieri's offer values Vard in excess of S$283 million, taking into consideration total outstanding shares in the Singapore-listed yard group stood at 1.18 billion as at Nov 11, according to data on Singapore Exchange.

Fincantieri Oil & Gas holds controlling interest of 55.63 per cent or over 656 million shares in Vard. The offer is for 44.37 per cent of the remaining over 523 million shares not held by the Italian group.

The offer period will begin on the day an offer document is dispatched to shareholders and end on a date at least 28 days after the day the offer document is dispatched, subject to further extensions.

The offer is conditional upon Fincantieri acquiring more than the 90 per cent of total shares in Vard. Once that threshold is met, trading of Vard shares may be suspended on SGX.

Fincantieri made the offer for the remaining shares in Vard after the Singapore-listed shipbuilding group on Friday posted a net loss of 80 million Norwegian kroner for Q3. Vard closed at S$0.23 a share on Friday.