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The board of directors of UAE-based oil rig builder Lamprell Plc said it has received a potential cash offer from a shareholder, to acquire the entire issued and to be issued share capital of Lamprell, even as it seeks to urgently resolve severe liquidity concerns.
In a disclosure on the London Stock Exchange (LSE) where it is listed, Lamprell said its board is considering the possible non-binding indicative cash offer from Blofeld, which owns a 25.06% shareholding, given the company's funding requirements of $75 million over the next two months.
Blofeld's proposal in respect of the possible offer "is at a very significant discount to the prevailing share price and any acceptable offer would need to include an interim funding solution or bridge financing," it said.
The parties have been in discussions for more than two months but did not reach an agreement on the price or conditions of a possible offer, Lamprell said. They will continue to work together to try to reach a workable solution by way of an updated offer, "which also provides a solution to the immediate liquidity needs of the Group," it added.
In a separate statement, the rig builder which has delayed releasing its 2021 financial statements, said the discussions had also been over a potential equity fundraise of up to $150 million and/or some form of interim financing arrangement.
Lamprell said given the anticipated contract awards, it expected the group’s 2022 revenue to be in the range of $400-500 million, with $340 million secured for 2022.
The company said its board is urgently pursuing the options available "to deliver a funding solution that will resolve the Group's immediate and severe liquidity concerns."
(Reporting by Brinda Darasha; editing by Seban Scaria)
