Trico Marine Offers to Buy DeepOcean for $681 Million

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

17 May 2008

Trico Marine Services Inc. said Thursday it has agreed to buy a majority stake in Norwegian subsea service company DeepOcean ASA for NOK 32 ($6.30) per share in cash, and has made an offer to acquire the remaining shares. Trico, which provides marine support vessels to the oil and gas industry, said it already agreed to buy 51.5 percent of DeepOcean, or about 55.7 million shares. The offer price represents a 28 percent premium to DeepOcean's closing price of NOK 25 ($4.92) on the Oslo Stock Exchange Thursday. The total offer values the equity of DeepOcean at NOK 3.5 billion ($682 million) excluding debt. Including debt, the deal values DeepOcean at NOK 4.1 billion ($810 million).
DeepOcean said its board has recommended shareholders accept the offer.
The deal, which is subject to certain closing conditions and regulatory approvals, is set to go before shareholders on May 27. The offer period is expected to last about a month. The deal is set to close within two weeks after the offer period ends.
Trico said it will finance the deal through a combination of cash, new and existing credit facilities and that it will issue $300 million in new convertible debt securities.
The companies said the deal will create one of the world's largest providers of integrated subsea services.

Source: Associated Press