Smit International has rejected the unsolicited offer for their terminals division. Lamnalco Group, however, still believes a merger is in the best interest of the stakeholders.
Executive Board Says ‘No’ to Merger
The Executive Board claims to have carefully reviewed the letter of Royal Boskalis Westminster NV, sent on behalf of the shareholders of the Lamnalco Group (dredging group Royal Boskalis Westminster nv and the Saudi Rezayat Group) and has refused their offer.
Smit has strong confidence in its terminal activities as a stable business with steady growth. The Division strongly benefits from synergies with the other Smit divisions. In addition, the company expects to benefit from the expected growth in the global market for terminal services to the oil and gas industry with an excellent customer base with long term contracts.
Smit’s Executive Board and Supervisory Board consider the offer not to be in the best interest of the company and its stakeholders and reiterates its commitment to pursuing its proven strategy.
Lamnalco Group Does Not Admit Defeat
In response to Smit’s refusal, the shareholders of the Lamnalco Group stated to continue to pursue a merger with the Terminals Division. According to Lamnalco, the response from Smit does not address the merits of the proposal. Shareholders Boskalis and Rezayat still believe that a merger of the terminal businesses of Smit and Lamnalco is in the best interest of their mutual stakeholders.
Source: https://www.boskalis.com/nieuws.php?itemID=1007&pageID=62[Boskalis] and https://www.smit.com/[Smit]
