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Thursday, 9 May 2019

Valentine CEO intends to acquire USD 37 mn stake in Maridive

UAE-based investor intends to acquire USD 37 mn stake in Maridive: Najjad Zeenni, the UAE-based investor, has announced his intention to acquire a stake in Maridive & Oil Services worth USD 37 mn, according to a company press release (pdf). Zeenni is also chairman of, and a minority shareholder in, Maridive subsidiary Valentine in Abu Dhabi

Transaction is at a premium to Maridive’s current share price: The move would see Zeenni, who currently owns a 25% stake in Valentine, agree to an effective share swap with Maridive, subscribing to a USD 37 mn capital increase at a price of USD 0.61 per share. Maridive’s closing share price on 7 May was USD 0.363 apiece. Maridive, a 75% shareholder in Valentine, would then use the proceeds to purchase an equivalent value of shares newly issued by the subsidiary. Zeenni would hold a total of 60,665,000 shares in Maridive, while Valentine would become 100% owned by the parent company. Zeenni’s Maridive shares would be subject to a lockup period.

Why the premium? Zeenni, a business partner of Maridive since 1990, says he wants exposure to the wider Maridive story at the same time as third-party research “points to a recovery in global offshore exploration and production spending,” the impact of which could be sharply felt in Maridive’s MENA home waters.

What’s next: The agreement is pending approval by Maridive’s management and shareholders as well as the usual CPs.

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