Seafox Proposes to Take Over GMS

The Dutch owner of a fleet of offshore jack-up service vessels Seafox has made a non-binding proposal to take over the UAE-based jack-up specialist GMS. Both companies provide offshore service support jack-up units for hook-up and commissioning in the oil & gas and offshore wind industries.

Seafox made the proposal on Sunday, April 26, citing "recent trading and share price volatility in relation to GMS." 

The proposal is for a possible cash offer for the entire issued and to be issued share capital of GMS by a wholly-owned subsidiary of Seafox, at a value of US$0.09 per GMS ordinary share.

In a statement on Thursday, GMS confirmed it had received "an unsolicited and non-binding approach from Seafox on 26 April 2020, which it is reviewing with its financial advisers."

GMS said: "Over the past year, GMS has completely overhauled its Board and management team, made material reductions in its cost base and at the same time delivered significant new contract wins. Agreement in principle has also been reached with lenders on the key terms of the restructuring of its bank debt, which will provide a firm platform to move the business forward through 2020 and beyond.  The Board of GMS remains fully confident in the future success of the business."

GMS, which will release its results on May 1, advised shareholders to take no action, adding that there can be no certainty that Seafox's proposal will result in an offer for the company, nor as to the terms on which any offer might be made.