Wind-market specialist Cadeler is making the expected progress with investors and is “in a good place” as it moves forward with the tender for shares of merger partner Eneti.
That was the word on Thursday from Cadeler chief executive Mikkel Gleerup as he led off Marine Money’s 24th annual ship finance forum in New York.
Gleerup was on his way to investor meetings following the session and told TradeWinds in a sideline interview that he has encountered only positive reactions to the all-shares transaction.
The companies are on track for their target to close the tender on 7 December and begin trading as a combined company on the New York Stock Exchange on 12 December.
Stifel shipping analyst Ben Nolan told clients in a note this week that the requirement for 85% of outstanding Eneti shareholders to approve the combination presents a high hurdle.
“While we like the deal and would advise approving it, getting that much turnout for any vote could be an issue. We still think there are high odds that the tender will succeed,” Nolan told clients.
Gleerup said on Thursday that he doesn’t view the 85% threshold as a problem.
“At this point, we don’t see it as an issue … I think I can say that we’re in a good place,” he said.
The merger would create the world’s largest owner of wind turbine installation vessels. It combines two specialists with powerful principals. Cadeler is backed by the BW Group, while Eneti is a Scorpio Group vehicle.
Eneti is the only WTIV owner listed on the New York Stock Exchange. Denmark-based Cadeler trades in Oslo. The combined company will trade on both exchanges.
The parties said in a 7 November filing with US securities regulators that any relevant regulatory concerns had been satisfied.
“All antitrust and foreign direct investment regulators notified of the transactions contemplated by the Business Combination Agreement have either cleared the transaction or confirmed they have no intention to investigate,” the parties said in documents filed on Tuesday.
In the $1.2bn all-shares deal, Cadeler will offer investors in Eneti 3,409 Cadeler shares for every Eneti share. Cadeler will have 60% and Eneti 40% of the combined company.
Gleerup will continue as CEO after the combination, while Peter Brogaard Hansen will continue as chief financial officer.
Gleerup told the finance conference that the US market is the only one globally that he would consider currently “paused”. Neither Cadeler nor Eneti has any current business in the US offshore sector.
Headlines around troubled US projects, which have faced delays and cancellations, are crowding out the reality of functioning markets elsewhere, Gleerup said.
“It’s almost like there are two realities: the one you read about in the headlines and then what is actually happening,” he said.
