BW Group has achieved majority control of Oslo-listed spin-off BW Energy after a mandatory offer rejected by the company and sister outfit BW Offshore.
The offer period ended on Friday with BW Group receiving acceptances for 30.9m shares, adding to its own 103.2m, giving it a stake of 51.96% — a chunk worth $347m.
BW Group and BW Energy chairman Andreas Sohmen-Pao said: “We are pleased to have fulfilled our legal obligation to make a mandatory offer to all shareholders after crossing the 40% ownership threshold for BW Energy, and look forward to continued efforts to build the company.”
Last week, independent board members of BW Energy turned down the deal at NOK 27 ($2.60) per share, which valued the oil exploration firm at NOK 6.7bn ($637m).
Shareholder BW Offshore, with 22.5%, also rejected the offer.
Sohmen-Pao and Carl Arnet, chief executive of BW Energy, did not participate in the decision.
BW Group has said it reserves the right to delist the company.
The Singapore shipping giant has been delisting other group operations in Oslo, such as LPG carrier outfit BW Epic Kosan.
BW Energy’s share price was NOK 26.80 on Monday.
BW Group said on 30 November that it had bought 250,000 shares in BW Energy for around NOK 5.9m, moving it to the 40% level that triggered the mandatory offer.
The parent already held a combined 63.3% before the offer, including BW Offshore’s stake, meaning share liquidity was already limited.
BW Group said the decision to trigger the offer was aimed at enabling BW Offshore to continue with its dividend policy of paying out BW Energy shares.
