Dubai Drydocks in $1.6b bid for Singapore's Labroy

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

30 Oct 2007

Dubai Drydocks World offered on Monday to buy Singapore's Labroy Marine for $1.63 billion as interest in rig-building assets heats up amid record oil prices. Dubai Drydock's cash offer per Labroy share works out to about 15 times the company's 2008 earnings per share. The state-owned Middle East company has irrevocable undertakings from holders of 65.49 percent of Labroy's shares, Labroy said in a statement. If completed, the acquisition will be Dubai Drydock's second in Singapore after its successful bid of $424 million for a 70 per cent stake in Pan-United Marine."The acquisition of Labroy has marked yet another milestone for Drydocks World in consolidating its position worldwide," the Middle East company said in a statement. Singapore-based traders said Dubai Drydocks' offer may not be sufficient to entice minority holders to sell. However, Labroy chairman Tan Boy Tee said in an interview published last week that he would sell his shares in Labroy if someone offered the right price. "I will take the money, enjoy my life [and] relax," he said.