Newsletter subscribe

Oil & Gas

UAE-based investor Najjad Zeenni acquires $37 mn stake in Maridive

Maridive
Posted: July 15, 2019 at 3:12 pm   /   by   /   comments (0)

Maridive & Oil Services’ board of directors has approved an offer by UAE-based investor Najjad Zeenni to acquire a USD 37 million stake in the company, the company announced in a statement. Zeenni, who is chairman, CEO and a 25% shareholder in Maridive subsidiary Valentine, will acquire a 12.8% stake in the company’s share capital. The transaction will see the company’s paid-in capital increase to USD 188.1 million from 163.8 million.

Zeenni has agreed to pay a subscription price of USD 0.61 per share, which is significantly higher than the USD 0.37 share price as of 11 July. He justified paying the premium price back in May by saying that he wants to give the company more exposure at a time when research is suggesting a global uptick in spending on offshore exploration and production.

Maridive will obtain full ownership of Valentine: Maridive, currently a 75% shareholder of Valentine, will use the proceeds to increase the subsidiary’s share capital before purchasing Zeenni’s 25% stake in the company for USD 1. Zeenni will own 60,665,000 shares in Maridive, while Valentine would become 100% owned by the parent company.

“A vote of confidence”: “A major step forward has been taken toward concluding a mutually beneficial transaction with Mr Najjad Zeenni,” Maridive Chairman Tarek Nadim said. “His acquisition of this stake is a major vote of confidence in Maridive’s continued ability to leverage its team and its modern asset base to create lasting value for stakeholders.”

The transaction is still pending regulatory and shareholder approval. If the agreement is greenlit, Zeenni’s shares would be subject to a three-month lock-up period during which he has agreed not to sell any of his shares in Maridive.

Grant Thornton carried out the fair value study for the transaction, which valued the company at USD 0.60 per share.

(Source: Enterprise.press)

Comments (0)

write a comment

Comment
Name E-mail Website