Subsea 7 has re-affirmed its interest in acquiring McDermott International, a Houston based EPCI contractor.
To remind, McDermott has rejected the takeover offer placed by Subsea 7 on April 17, 2018, to acquire the entire issued share capital of the company for USD 7.00 per share, payable entirely in cash or up to 50% in Subsea 7 stock and the balance in cash.
Subsea 7’s proposal is subject to the termination of McDermott’s pending transaction with CB&I, the company informed.
According to McDermott’s Monday statement, the proposal was not in the best interests of the company as it significantly undervalued McDermott and was not an attractive alternative to the proposed combination with CB&I.
McDermott also added that it is fully committed to completing the transformational combination with CB&I, expected in May 2018, to create a vertically integrated onshore-offshore company.
Furthermore, Subsea 7 said that the company is open to considering amending its proposal if it can discover additional value through discussions with the McDermott management team.
Jean Cahuzac, Subsea 7’s CEO said: “A combination with McDermott is supported by compelling industrial logic. We would welcome the opportunity to engage with McDermott’s board of directors and management to discuss our proposal and the substantial upside opportunity represented by ongoing participation in the equity, with a view to achieving a combination that would be in the best interests of our respective shareholders.”
McDermott re-affirms rejection
McDermott has today reiterated its rejection of the Subsea 7’s offer to acquire the company.
McDermott said that following the unanimous determination of the company’s board of directors, it rejected an unsolicited, non-binding proposal received from Subsea 7.
“The company’s board believes the combination with CB&I is in the best interest of McDermott and its stockholders, and has recommended that McDermott stockholders support the transaction,” the company said.
It remains subject to customary conditions, including approval by McDermott’s and CB&I’s stockholders and other closing conditions.