May 4, 2020 / 7:24 AM / 24 days ago

UPDATE 1-Gulf Marine Services rejects Seafox International's $32 mln buyout offer

(Adds details on debt restructuring, Seafox’s response)

May 4 (Reuters) - Abu Dhabi-based Gulf Marine Services (GMS) on Monday rejected a $32 million takeover proposal from its second-largest shareholder Seafox International, saying the offer fundamentally undervalued the oilfield industry contractor.

London-listed GMS in March reached an agreement with its syndicate of banks to restructure its debt as it strives to weather a slump in oil industry activity driven by the collapse in crude prices.

GMS, which provides support vessels for offshore oil and gas and other energy installations, said Seafox’s cash offer of $0.09 per ordinary share was made just before the planned conclusion of the documentation of its amended bank facilities.

“The board remains highly confident in the future success of the company. Now is not the time for shareholders to sell at a price that is far below the true worth of GMS,” its Executive Chairman Tim Summers said.

Seafox said in a separate statement it was requesting shareholders to support its proposal as it offers a substantial premium and certainty amid the challenges GMS faces. The company holds a 13.7% stake in Gulf Marine, according to Refinitiv data.

Seafox also warned that if its offer turns unsuccessful, it would not be supportive of any future equity raise by GMS. (Reporting by Shanima A in Bengaluru; editing by Uttaresh.V)

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