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.