The board of directors of MultiClient Geophysical (MCG) have unanimously decided to recommend that its shareholders accept the voluntary cash offer from Geoex for all outstanding shares in the company.
Geoex increased its offer to NOK 1.40 per share, or approximately NOK 130.0 million of total share capital, following the competing offer by Spectrum of NOK 1.25.
The offer price represents a premium of approximately 30% to the closing price on the Oslo Stock Exchange on December 21, 2016, one day prior to announcement of the offer on December 22, 2016, and a premium of approximately 44% to the volume weighted average share price on the Oslo Stock Exchange for the 20 trading days period ending on December 21, 2016.
Jon Stærkebye, chairman of MCG, said: “After having extensively explored multiple options to enhance shareholder values, and after having undertaken a detailed review of the terms and conditions of the offer, the board is of the opinion that the offer reflects the strategic and financial value of MultiClient Geophysical ASA, and represents a significant premium to the share price. As well as providing value for shareholders, the board recognizes the opportunity for MultiClient Geophysical ASA to continue its growth strategy under the offeror’s ownership. The board recommends that shareholders accept the offer.”
Tom Wolden, chief executive officer of MCG, said: “This Offer represents an exciting new chapter for MultiClient Geophysical ASA. Under the new ownership proposal, the company will benefit from experienced partners, whose dedication, track record and supportive long term approach will provide strong support to reach the company’s full potential and long term ambitions.”