Teekay Offshore is asking shareholders to relinquish their stock in preparation of going private as the legal fight against the deal continues.
Monday, the company filed documents with the Securities and Exchange Commission ahead of its anticipated delisting from the New York Stock Exchange, giving shareholders the right to swap their shares for $1.55 in cash or shares with limited voting rights and transferability.
The take-private deal is being pushed by Toronto private equity firm Brookfield Business Partners, who bought Teekay Corp out of the offshore player in April for $100m.
The move gave Brookfield roughly three-quarters of all Teekay Offshore shares, after having taken a 60% position in the company in July 2017.
Several minority shareholders, however, argue the company is worth more than what Brookfield is offering, even after it improved its offer from $1.05 to $1.55.
The offer touched off two lawsuits in Manhattan federal court, one lead by JDP Capital Management and the other by Steven Monosson that accuse the company of breaching its fiduciary duty to shareholders
The two groups are looking to consolidate their lawsuits, according to court papers filed late last week. In early September, the court accepted the two as related.
In another set of court papers, Teekay Offshore and Brookfield said the lawsuits were a "vain effort by activist investors" to scuttle a deal that fairly compensates investors, that they had no fiduciary duty, just a duty to act in good faith and that New York is not the proper venue for the lawsuit.
Teekay Offshore and Brookfield say the $1.55 offer is a considerable premium to the $1.16 shares closed 30 September, ahead of the duo announcing the improved offer.
Monday, shares were trading at $1.53, up less than a penny.
When the improved offer was announced, shares jumped to $1.54 and stayed in that range since.
