The offer came after the parties began negotiating. However, it was categorically rejected by Solstad’s board of directors.
Kjell Inge Røkkes Aker has received harsh criticism from investor Christen Sveaas for the restructuring of Solstad Offshore. Photo: Terje Pedersen / NTB / Berit Roald / NTBPublished: Published:
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Solstad’s board writes about the proposal in a letter to shareholders. There the committee provides a comprehensive explanation of the bailout agreement that is at the heart of the dispute between billionaires Christen Sveaas and Kjell Inge Røkke.
Solstad announced on Tuesday that the first part of the controversial deal canceling the debt has been completed.
In the letter, Solstad’s board refutes criticisms from the Sveaas camp and defends the transaction, but also provides some new information about the process.
“The company has recently, more than two months after the announcement of the refinancing, received an indicative offer from a group of shareholders for the share capital of the Borrower Group. The agreement means that Solstad is divided in two, and the Borrower Group includes the new Solstad. In the deal with Aker, the new Solstad was valued at 1.5 billion before capital raising proceeds. at a higher valuation than that resulting from the refinancing,” the board writes.
Solstad: – He didn’t get carried away
The deal with Aker and the banks, which refinances 11.4 billion in debt and adds 4 billion in new capital, was announced on October 23.
That means the offer hit the table sometime after Christmas Eve. The parties have been in negotiations since December 18 last year. However, the offer was rejected by the council.
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The letter from Solstad’s board hints at billions of dollars in earnings
E24 asked Solstad Offshore CEO Lars Peder Solstad about the size of the equity offering and who is part of the equity group.
He doesn’t want to say anything about it and refers to the shareholders’ letter, but states the following:
– The point is that it was only a partial solution. A complete solution has not arrived. It couldn’t be done.
Solstad Offshore CEO Lars Peder Solstad Photo: Solstad Offshore
He continues:
– The solution itself is only about fairness. It doesn’t address the other elements the company had to put in place.
– The company had to find a total solution and this was not what was proposed, says Solstad.
Blank rejection
In the letter, the board emphasizes that the offer did not include a solution for the refinancing of the NOK 11.4 billion debt, nor a claim relating to the NOK 1.8 billion vessel Norman Maximus.
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The board writes that this alone means it was not “a viable alternative refinancing.”
“In other words, even two months after the announcement of the refinancing, no other shareholder has found an alternative solution that resolves the Maximus Kravet Maximus Kravet dispute related to the 1.8 billion Norwegian kroner vessel Norman Maximus. or it is possible to complete it by the loan expires on March 31, 2024″
“This demonstrates the complexity the board faced and confirms that it made the right decision,” the board writes.
Council Solstad adds:
“In any case, and importantly, the offer was neither available nor probable at the time the refinancing was agreed.”
The topic
In early December, the billion-dollar battle began when investor Christen Sveaas and her investment company Kistefos launched a comprehensive attack on Kjell Inge Røkkes Aker regarding the shipping company’s values.
The parties have since started a dialogue. Meanwhile, Kistefos’ request for an extraordinary general meeting to consider a lawsuit against the board of directors and the Røkke companies involved has been put on hold. The dialogue is still ongoing.
The crux of Kistefos’ criticism is that the deal canceling Solstad’s debts treats shareholders differently in favor of Aker.
The requirement was equal treatment as other shareholders are allowed to purchase more shares in the capital raising.
2024-01-16 20:37:14
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