McDermott Rejects Subsea 7 Takeover Proposal

McDermott International has rejected Subsea 7’s offer to takeover the company.

Subsea 7 has, on Tuesday (April 17, 2018), made a proposal to acquire the entire issued share capital of McDermott for USD 7.00 per share, payable entirely in cash or up to 50% in Subsea 7 stock and the balance in cash.

The proposal represents a premium of 16% to the latest closing share price of McDermott on April 20, 2018, and a premium of 15% over the volume weighted average share price of McDermott over the previous 20 trading days.

In a letter sent to the McDermott’s board of directors Subsea 7 said that it will consider increasing its proposed price upon further assessment of McDermott’s business through discussions with the company’s management.

On April 20, 2018, the board of directors of McDermott rejected Subsea 7’s proposal.

Jean Cahuzac, Subsea 7’s chief executive officer, said, “Given the attributes of the proposed transaction and our stated ability to further enhance our proposed terms, we encourage the McDermott board of directors to reconsider this compelling opportunity to combine two complementary businesses. Our proposal provides equity upside in a company with a robust financial position, as well as a meaningful premium. We see significant merit in such a transaction for all shareholders, and with our financial and legal advisors continue to be open to discussions.”

Subsea 7 also believes there would be significant benefits to all pro forma shareholders from a combination of the businesses.

The company’s proposed transaction would be a subject to regulatory and other customary closing conditions.

Share this article

Follow Subsea World News

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

OTC ASIA 2020

The Offshore Technology Conference Asia (OTC Asia) is where energy professionals meet to exchange…

read more >

6th Offshore Well Intervention Conference Gulf of Mexico

The Offshore Well Intervention Gulf of Mexico conference (OWI GOM) is returning to Houston, Texas for its sixth year on Wednesday 20 – Thursday 21 November.

Featuring Anadarko, BP, Shell, Chevron, BHGE and Oceaneering, the conference aims to help operators transition to the latest compliance updates, WI systems and business models that enhance safety, quicken well access and improve commerciality.

Across two days, more than 200 delegates, 15 exhibitors and 30 speakers will network together and create solutions to some of the most pertinent industry challenges right now, through a conference programme focused on:

  1. Clarifying compliance updates
  2. Quicker well access and safer well control
  3. ​Understanding HPHT well intervention (systems)
  4. Forecasting well intervention activity, discussing new commercial models and comparing platform options
  5. Best practice riserless well intervention
  6. ​The latest well intervention equipment

For registration, speaking or sponsorship enquiries contact Abigail Clifton on aclifton@offsnet.com; +44 (0) 203 793 8800.

More info

read more >

Underwater Intervention (UI) 2020

Underwater Intervention Conference is a conference where oil and gas industry professionals, senior decision…

read more >

Subsea Expo 2020

Subsea Expo is the world’s largest subsea exhibition and conference and is completely free to attend.

read more >