Gulf Marine rejects Seafox takeover offer

Abu Dhabi-based Gulf Marine Services (GMS) has announced that it has rejected Holland’s Seafox's unsolicited US$32 million approach to acquire GMS on 30^th April.

The GMS Board confirmed that it has unanimously rejected the Seafox Proposal and in a statement said: "The Seafox Proposal comes at a time of significant macro uncertainty caused by Covid-19. This has resulted in depressed share prices globally, particularly in the Energy sector, and it has, the Board believes, resulted in the Company's shares trading at all-time lows recently."

GMS added that it is performing well despite the challenging environment.  It says that new business has been successfully secured with eleven new contracts since the start of 2019 and the backlog stands at US$240 million.

GMS added that it is confident in future value creation as an independent company. It noted that all available vessels in the fleet are currently contracted - secured utilisation for 2020 of 76 per cent versus 69 per cent in 2019.

Tim Summers, executive chairman of GMS, said: "Operationally and commercially, GMS is in much better shape today than it was 12 months' ago.  The Company is performing well notwithstanding the difficult environment; we have reduced costs and we will continue to reduce them further in 2020.  We have agreed in principle a deal with our banks that provides the Company with long-term financial stability.  The Board remains highly confident in the future success of the Company.  Now is not the time for shareholders to sell at a price that is far below the true worth of GMS."