SEA 5000 bidder seeks to take subsidiary private

Fincantieri and its subsidiary Vard have jointly announced a proposal to voluntarily delist Vard from the Singapore Exchange Securities Trading Limited (SGX-ST).

Fincantieri, which holds a 79.34 per cent stake in Vard, is now offering SG$0.25 per for every share it does not own.

Fincantieri, which is one of three downselected companies competing for Australia's $35 billion SEA 5000 Future Frigates contract, said that it has no plans to change Vard's existing business, but wants to fully integrate Vard with its other subsidiaries.

"Since the acquisition of the majority stake in Vard in 2013, the offeror's objective has been to delist Vard and to implement a series of synergies in engineering and production," Vard said in an announcement.

The delisting is conditional upon the SGX-ST agreeing to Vard’s application to delist, and the delisting resolution being approved at the EGM by a majority of at least 75 per cent, and not being voted against by 10 per cent or more, of the total number of Vard shares held by shareholders present and voting.

Under Fincantieri's mobilisation initiatives for Australia's Future Frigates Project bid, Vard will have blocks for expedition cruise vessels for Coral Sea Expeditions constructed in Australia.

Fincantieri Australia chairman Dario Deste said this opportunity will help both the Australian defence industry and the oil and gas industry.

“Building blocks of the Coral Sea Expeditions cruise ship here in Australia shows how Fincantieri’s size and strength can join new opportunities in the market and the shipbuilding industry together," Deste said.

“Vard offers exciting opportunities for joint venture partners in Australia’s offshore oil and gas industry, and these opportunities flow directly from the engineering know-how Fincantieri contributes to Australia’s naval industry.

“These initiatives demonstrate Fincantieri’s vision for Australia, where Australian citizens and Australian companies work together as an industry to design and build advanced naval vessels on a sustainable, global and sovereign basis."

A spokesperson for Fincantieri told Defence Connect if the delisting of Vard is successful it would have no impact on the cruise vessels blocks contract.

 

SEA 5000 bidder seeks to take subsidiary private
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