Subsea 7's bid to acquire DOF Group ASA, a Norwegian shipping supply group, remains on the table until the end of the day, as confirmed by the company. This announcement comes after DOFG's board rejected the offer on Friday, stating that the proposed price of NOK35 per share fell below their equity valuation expectations for both the board and current shareholders.
Subsea7 justified its offer based on the pricing of a recent new share issue, which occurred through an initial public offering at NOK28 per share. Additionally, the pricing of shares allocated to DOFG's chairman and directors on June 8, 2023, was set at NOK23 per share. Taking these factors into account, Subsea 7 believes its offer is reasonable.
Notably, Subsea 7 has garnered support from major shareholders of DOFG with whom they have engaged. These shareholders acknowledge the industrial rationale behind the merger and find the equity element of Subsea 7's offer attractive.
Despite these positive overtures, DOFG's board has declined to enter into discussions with Subsea 7 regarding the offer. In response, Subsea 7 has made it clear that it will not modify its proposal unless DOFG's board shows a willingness to engage in constructive dialogue.
The current situation highlights the impasse between Subsea 7 and DOFG, as the former seeks to move forward with the acquisition while the latter remains unresponsive to the offer. It remains to be seen whether further developments will unfold in this ongoing negotiation between the two companies.
