SEA9, a unit of Asian private equity firm Headland Capital Partners, is paying SGD 0.80 ($0.64) per share for all the outstanding equity in Kreuz Holdings.
The deal values Kreuz, also quoted on the SGX, at SGD 445.6m, while Swiber’s 57.5% holding is worth SGD 256.2m.
Swiber will book a net gain of $90.6m from the sale of the subsea specialist, which yesterday reported a 60% surge in quarterly earnings.
The offer price is a premium of nearly 40% over the 12 month volume weighted average price of Kreuz common stock, though not far short of the current price of SGD 0.765 per share.
Shareholders controlling 73% of Kreuz stock have committed to vote through the takeover at a special meeting.
Swiber and Kreuz said the transaction would allow them to carry out their respective expansion plans.
Francis Wong, CEO of Swiber, said: “The completion of the proposed disposal will unlock further value for all shareholders of Swiber given that the scheme is at a premium of 39.6% over the 12-month volume weighted average price of Kreuz Shares.”
This is Hong Kong-based Headland Capital’s second major offshore investment following its purchase of a large stake in vessel owner Miclyn Express Offshore in 2011.
The private equity firm, formerly HSBC Private Equity (Asia), is trying to complete a full takeover of the Australia-based operator along with partner Champ Private Equity.
