Viking Offshore and Marine gets unconditional offer of 1 cent a share

Viking Offshore and Marine has received an unconditional cash offer from a group of businessmen at one cent a share, for all of its issued and paid-up ordinary shares.

The joint offerors comprise Mr Toh Kok Soon, Synergy Supply Chain Management, Irelia Management, Tristan Management and Subtleway Management.

In a bourse filing on Thursday, the Catalist-listed firm said the offerors have acquired about 87 per cent of the total issued shares in the company, or 477.9 million shares, from Blue Ocean Capital Partners and Viking chief executive and executive director Ng Yeau Chong.

Viking said the offer was made solely to comply with the Code on Take-overs and Mergers. There is currently no intention to introduce any major changes to the existing businesses of the group, redeploy the fixed assets of the group or discontinue the employment of group employees, other than in the ordinary course of business.

But the offerors will, on the close of the offer, review strategic options in relation to the existing businesses to "release their value".

The offer price represents a 91.2 per cent discount to the volume-weighted average price (VWAP) per share of 11.3 cents for the three-month period and an 87.2 per cent discount to the VWAP per share of 7.8 cents for the one-month period, up to and including the last trading date.

As at the announcement date, the firm has an issued and paid-up share capital of $106.5 million, comprising 549.4 million shares, excluding 159,230 treasury shares.

The board will appoint an independent financial adviser (IFA) to advise the directors of the company in regard to the offer.

A circular containing the advice of the IFA and the recommendations of the independent directors will be sent to shareholders within 14 days of the date of dispatch of the offer document.

Shares of Viking closed up 1.4 cents, or 18.4 per cent, at nine cents, prior to the announcement.

THE BUSINESS TIMES