Global Geo Services ASA (GGS) has retained Pareto Securities ASA, Fearnley Fonds ASA and CAR ASA to advise on and effect a private placement of shares directed towards professional and international investors raising gross proceeds of between NOK 375 - 425 million. The purpose is to finance the acquisition of the 3 tender barge rigs for a total consideration of US $215 million.
GGS will offer between 220-250 million shares. The subscription price has been set to NOK 1.70 per Share. Minimum subscription will be set at NOK 0.5 million The major shareholders, Spencer Energy AS and Ferncliff AS, including related parties will subscribe and be allocated shares equal to NOK 75 million each.
Shares offered in the private placement will comprise of already listed shares made available for the Managers by existing shareholders based on a Stock Lending Agreement between the Managers and Spencer Energy AS and Ferncliff AS. All shares offered in the private placement are tradable subject to resolution by the extraordinary general meeting. A notice for the extraordinary general meeting will be sent out as soon as practicable possible.
The shares borrowed from existing shareholders will be returned by the issue of new shares under an authorization granted to the Board of Directors of GGS.
The private placement is subject to the approval of the GGS board of directors subject to resolution by the extraordinary general meeting.
In addition the Board of Directors of GGS will following the private placement effectuate on a subsequent offering of approx NOK 50 million, as previously announced in the press release dated August 14, 2007, directed towards the shareholders in GGS as of August 23, 2007 ('Eligible Shareholders') that were not invited to subscribe for shares in the private placement, subject to restrictions set forth by certain jurisdictions.
The subsequent offering is expected to commence during September/October 2007 following approval of an offering prospectus by Oslo Bors.
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