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Ardmore rejects Hafnia takeover proposal
Posted on Tuesday, 07 July 2020 12:34
Ardmore Shipping has responded to Hafnia’s public announcement that an unsolicited takeover proposal tabled in June was rebuffed by stating the approach “was highly opportunistic” and “substantially undervalued”. The Bermudan-domiciled, Oslo Børs-listed hydrocarbons transportation company offered to issue and exchange 2.40 new shares for each existing stock. Hafnia’s bid implied a price of USD 3.87 apiece, which represented a discount of about 18.0 per cent to the close of USD 4.72 on 19th June and of 28.0 per cent to the 30-day volume weighted average. The Bermudan, New York Stock Exchange-listed chemical tanker operator said its board “thoroughly reviewed the proposal, including consulting with independent legal and financial advisors”. It added the directors “unanimously determined that the proposal was highly opportunistic, substantially undervalued Ardmore and its future prospects, and did not constitute a basis for engaging in discussions with Hafnia”. Shares in the company closed 16.2 per cent higher yesterday at USD 5.01 and a capitalisation of USD 166.46 million. Earlier in the day, Hafnia publicly revealed a takeover proposal sent in June had been summarily rejected by Ardmore. The company indicated it was disappointed by the response and lack of “substantive follow-up discussions or negotiations”. Hafnia noted the offer implied a premium of 70.0 per cent to the net asset value (NAV) per share, based on the last trading price on 12th June 2020. Furthermore, the proposal ceded a 17.9 per cent stake in the combined entity, which was billed as “a global industry leader in the oil product tanker market, with a controlled fleet of 210 vessels”. Hafnia rounded off its bullet point list by saying the resulting company would have a NAV of USD 1.50 billion and a significantly improved market capitalisation, with potential for greater liquidity and dividend capacity. Zephyr, the M&A database published by Bureau van Dijk, shows 98 deals targeting the global water transportation sector have been announced in 2020 to date. The USD 1.46 billion institutional buyout of H-Line Shipping is the largest of the year. © Zephus Ltd