Norway’s competition authorities have rejected the application for Floatel International, an associated company of Keppel Offshore & Marine, to merge with Oslo-listed Prosafe, Keppel Corp. said in a filing to SGX Wednesday.
“Floatel and Prosafe are currently assessing whether to appeal against the decision,” Keppel said.
The deal had been conditional upon clearances from competition authorities in Norway and the U.K., creditor and shareholder approvals from Floatel and Prosafe, respectively, and Prosafe remaining listed on the Oslo Stock Exchange, the filing said.
In June, Keppel had announced the all-share merger deal. Under the deal, Prosafe would have acquired all of Floatel. In exchange, Prosafe will issue new shares equivalent to 45 percent of the company and new conditional preference shares to Floatel shareholders.
Floatel’s substantial shareholders include KOM subsidiary FELS Offshore and OCM Wonder PF/FF Holdings.
Based on FELS Offshore’s 49.92 percent interest in Floatel, Keppel would have ended up indirectly holding 22 percent of Prosafe once the deal was completed.
Keppel FELS is a wholly owned subsidiary of KOM, which is part of Keppel Corp.