FRC and DOF delist DOF Subsea

A US private equity house has participated in this year's largest buyout in Norway. First Reserve Corporation (FRC) has together with Norwegian Shipping Group DOF ASA acquired the subsea services contractor DOF Subsea in a deal valuing the company at NOK 4.3bn. DOF, which controlled 57.17% of the shares in DOF Subsea prior to the bid, holds 51% of the shares in the holding company, while the remainder is owned by FRC.

"The main motivation for acquiring and subsequently delisting DOF Subsea was to be able to contribute the capital and knowledge necessary to continue the growth of the company," CEO of DOF Mons Aase explains. He adds that in the current market the stock exchanges do not supply the necessary liquidity for a company at an expansion stage.

FRC and DOF has been in discussions regarding DOF Subsea for some time, and intended to launch a bid of NOK 45 per share in July. The offer was finally put forward in October and recommended by the board at NOK 36 per share. The valuation represented a premium of 44% to the closing price on 27 October, and 18% to that of 9 July 2008.

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