Swiber to sell Kreuz stake for $206m

Singapore’s Swiber has said it has received an S$256.2 million ($206.31 million) offer from compatriot investment firm SEA9 for its 57.5% stake in subsea player Kreuz Holdings.

Swiber said the proposed takeover “represents a clean cash exit opportunity for the company to realise its entire investment at an attractive premium”.

Swiber’s board has backed the proposed scheme of arrangement under which SEA9 would buy its 320.25 million Kreuz shares for S$0.80 each, a premium of around 39.6% on the 12-month average price of the stock.

Singapore-listed Kreuz Holdings is an integrated subsea services provider with a book value and net tangible asset value of S$249.8 million as of 30 September.

Swiber said it stood to make a net gain of $90.1 million on the deal after settlement of receivables and payables.

Directors of Swiber representing around 21% of Kreuz shareholders have agreed to back the scheme, which will be put forward for approval at a forthcoming extraordinary general meeting.