Oslo: A subsidiary of the HNA Group has made a bid to buy out a leading Norwegian ship investment vehicle, although its valuation has been questioned by one independent financial adviser. HNA Group’s subsidiary Sinindo is willing to pay NOK8 per share, for Oslo-listed SinOceanic Shipping, a premium of approximately 43.6% to the company's closing price on 27 June for the remaining shares it does not hold. Sinindo has been gradually building up its control of SinOceanic’s shares. Pareto Securities, acting as an independent financial advisor to the board of directors of SinOceanic, warned the offer did “not reflect the current underlying values of the company” and was “therefore not a fair value to shareholders”.
SinOceanic agreed with Pareto’s viewpoint, but said Sinindo’s share purchases should not be seen as hostile. The board did voice its concerns about another of HNA Group’s subsdiaries, Grand China Logistics, and the number of court cases that line faces.
The offer document stipulates that Sinindo has no plans to change the future business of SinOceanic and that there are no plans to make changes to the company's workforce.
Nevertheless, the board concluded that it could not give its shareholders a general recommendation on whether to accept the offer or not. [02/08/12]