Viking Offshore gets mandatory offer after investor group acquires 87 percent stake

Viking Offshore and Marine has received Thursday a mandatory unconditional cash offer for all of its shares after a group of investors acquired an 87 percent stake in the company from Blue Ocean Capital Partners and from Ng Yeau Chong at just S$0.01 a share.

Acquiring the stake triggered the requirement to make a mandatory unconditional cash offer for all of Viking Offshore’s shares, UOB Kay Hian said on behalf of the investor group in a filing to SGX.

The offer price will be S$0.01 a share, which is a discount of nearly 87 percent to the last traded share price of S$0.076 on Wednesday, the filling said.

If the mandatory offer results in the joint offerors holding more than 90 percent of Viking Offshore’s shares, which would result in suspending trade of the shares, the joint offerors don’t intend to exercise their right to compulsorily acquire the remaining shares, the filing said.

“It is the current intention of the joint offerors to maintain the listing status of the company on the SGX-ST following completion of the offer,” the filing said.

The joint offerors don’t plan to introduce any major changes to Viking Offshore’s existing businesses, but do plan to review their strategic options for the existing businesses, such as acquisitions, disposals and joint ventures, the filing said.

Viking Offshore’s shares only re-started trade in August, after being suspended in 2019 due to a material uncertainty over its ability to remain a going concern due to its liabilities and borrowings in default.

In February, Viking Offshore had entered a placement and loan agreement with Blue Ocean Capital Partners and Ng Yeau Chong for the proposed placement of shares equivalent to 80.475 percent and 6.525 percent, respectively, of the company’s enlarged share capital and interest-free shareholder’s loans of a total S$1 million. Ng Yeau Chong is the company’s CEO and executive director. Blue Ocean is wholly owned by Lin Wei Daniel.

That deal had enabled the company to restart trade of its shares.

Prior to the share acquisitions announced Thursday, the joint offerors did not own any shares or warrants of Viking Offshore, the filing said.

The joint offerors acquired shares:

  • Toh Kok Soon, a businessperson, acquired 75.43 million shares from Blue Ocean
  • Synergy Supply Chain Management, which is wholly owned by its sole director, businessperson Ong Swee Sin, acquired 16.34 million from Blue Ocean
  • Irelia Management, which is a special purpose vehicle wholly owned by businessperson Tan Chiau Wei, bought 100.79 million shares from Blue Ocean,
  • Tristan Management, which is a special purpose vehicle wholly owned by its sole director, businessperson Ng Boon Chee, acquired 141.42 million shares from Blue Ocean, and
  • Subtleway Management, which is a special purpose vehicle wholly owned by its sole director, businessperson Lim Jun Hao, bought 108.12 million shares from Blue Ocean and 35.85 million from Ng Yeau Chong, according to a filing to SGX

Viking Offshore provides services to the oil and gas industry, including heating, ventilation and air-conditioning (HVAC) and refrigeration services, winches and power packs, and systems integration for telecom, fire detection and instrumentation systems. The company also participates in offshore and marine asset ownership and chartering via its fully owned Viking Asset Management unit.