Saga’s takeover of drilling firm hits a speed bump

Saga’s takeover of drilling firm hits a speed bump

Oslo: In a surprise move, the board of SD Standard Drilling has decided to reject the offer made from Saga Tankers for its mandatory takeover.

Saga’s mandatory offer, made on June 17, was for NOK1.35 a share. Despite the chairman of both companies being the same man, Martin Nes, the board at SD Drilling today rejected the offer saying it was below the net asset value of the drilling company and undervalued its prospects.

“Based on an overall assessment, it is the board’s view that the offer price is at the low-end of what it considers to be a fair market value of the company and the board has concluded to recommend to the company’s shareholders not to accept the offer of Saga,” the board of the drilling firm said in a release to the Oslo Bors.

SD Standard Drilling was incorporated in 2010, starting out as a rig operator. The company later sold all its rig building contracts and has a strategy of investing within the oil and gas service sector.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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