Fairstar Heavy Transport NV Board of Directors REJECTS Dockwise take over proposal
Fairstar Heavy Transport N.V. (FAIR) has received an unsolicited, conditional,offer from Dockwise to acquire Fairstar shares at a purchase price of NOK 9.3 per share
The Joint Supervisory and Management Boards of Fairstar have met this evening and concluded that the conditional offer for Fairstar shares significantly undervalues the business and recommends to Fairstar shareholders NOT TO ACCEPT the conditional offer from Dockwise. The Board is aware that a number of shareholders have been solicited by Dockwise to enter into a conditional agreement at the current offer price and cautions shareholders to consider that accepting such an arrangement may limit their opportunities to accept an alternative proposal at a higher offer.
The Company considers the Dockwise offer to be opportunistic and overlooks a number of significant aspects of Fairstar's business, notably the replacement cost of the Fairstar fleet, the value of the Company's order book and the reputation Fairstar has established as a provider of high value marine transportation services for energy infrastructure projects involving the world's major energy and EPC Companies.
Philip Adkins, Chief Executive Officer of Fairstar, stated on behalf of Fairstar, "Fairstar has demonstrated remarkable success building an order book of almost USD 300 million with a modern, four vessel fleet. We have been awarded a series of high value, multi voyage contracts for energy infrastructure projects for on-shore LNG, as well as off-shore field developments. In every single contract award, we have competed against Dockwise and won. The Fairstar "Red Box Strategy" has built the foundation of a business that has clear, sustainable returns to Shareholders for the next five years. The Dockwise offer is a clear confirmation of their failure to compete at the high value segment of the market. It is no surprise that they would try to capture the benefits of high value, multi voyage contracts by trying to buy our Company. However, the conditional nature of their proposal as well as the significant discount to the true value of Fairstar that they are offering should be treated with suspicion by shareholders. Consolidation in the marine heavy transport industry is not limited to the potential combinations the market is now aware of. After the Dockwise offer was published on the evening of April 22, Fairstar has been contacted by a number of shareholders who have informed us that they will not accept the conditional offer and have encouraged management to explore alternatives that will realize a more appropriate level of value for the Company.
For further information please contact:
Philip Adkins, CEO ([email protected])
Ingmar den Blanken, Treasurer ([email protected])
Web: www.fairstar.com
Tel: +31 (0)10-403 5333
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Profile Fairstar Heavy Transport:
Fairstar Heavy Transport N.V. is a leading provider of marine heavy transport solutions, specializing in high-value cargoes for the offshore and onshore energy and construction industries. Fairstar owns and operates two of the most modern semi-submersible heavy transport ships in the global fleet, FJORD and FJELL. The 50,000DWT, open-stern semi-submersible vessels FORTE and FINESSE are currently under construction with Guangzhou Shipbuilding International in China and will be owned and operated by Fairstar when they are delivered in May and October of 2012 respectively. Fairstar is based in Rotterdam and quoted on the Oslo Stock Exchange (ticker: FAIR).
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