Kristian Siem has abandoned a plan to buy out other Siem Offshore investors and list a new company in its place.
In a stock exchange filing made on Thursday, Siem Offshore said it was no longer looking to swap the offshore vessel owner’s Oslo Stock Exchange listing with Siem Renewables.
According to the plan disclosed in March, the new company would have been known as Siem Sustainable Energy.
“Based on recent market developments and dialogue with the company’s creditors, the company has decided that it will not pursue the re-domiciliation plan at this time,” Siem Offshore said in Thursday’s filing.
In March, the company said shareholders with a stake totalling about 38% of the company were supportive of the move.
The deal would have been a share-for-share deal that would have left Siem Offshore as a subsidiary of Siem Sustainable Energy.
As it stands, Siem Renewables is a shell company owned by Siem Investments.
When the deal was announced, Siem Offshore said the new structure would pursue new opportunities in the energy sector.
The renewable energy business would have been run by a second subsidiary of Siem Sustainable Energy.
Siem Offshore’s management would have stayed in place in the new Siem Sustainable Energy.
On Thursday, Siem Offshore’s shares closed at NOK 12.12 ($1.22), falling NOK 1.34 over the course of the trading day.
Siem Offshore shares were trading at NOK 5.32 on the day that the Siem Sustainable Energy plan was announced.
In the first quarter, the company’s profit jumped to $6.6m, up from a loss of $9.6m in the first quarter of 2021.