The share price of Green Reefers plunged by more than 22% in the immediate wake of a low mandatory offer from chairman Kristian Eidesvik to buy out minority shareholders.
Eidesvik company, Caiano, is offering just NOK 0.05 per share which is below the NOK 0.06 per share low point the stock has traded at over the last year.
The price has been set at a low level as under Norwegian securities regulations Eidesvik has to make a mandatory buyout offer to minority shareholders but he would rather they held on to their stock.
Green Reefers shares have traded as high as NOK 1.17 in the last year but in a stock exchange statement Green Reefers said the mandatory offer price of NOK 0.05 per share was equal to the highest price paid by Caiano for Greek Reefers shares over the last six months.
The Green Reefers share price later made a partial recovery but still closed more than 11% down on the day.
The buyout offer will be made to minority shareholders within four weeks.
In a company statement last week Eidesvik indicated he had yet to decide whether to put forward an offer or sell down his stake to below the threshold that would force him to make an offer to minority shareholders.
But it now appears Eidesvik has decided on his strategy...an offer that shareholders can’t accept.
