Lamprell in talks on MIS acquisition

There could be some consolidation ahead in the Arabian Gulf rig building, repair and fabrication business. Lamprell plc issued a stock exchange announcement today that confirmed that it has entered into a letter of understanding with Maritime Industrial Services Co. Ltd Inc in respect of a potential offer to purchase 100% of the shares in MIS at a price of NOK 38 per share.

But, says the announcement "discussions with MIS are at a very preliminary stage" and "any potential offer remains subject to the fullfilment of a number of conditions, including the satisfactory completion of due diligence."

Lamprell anticipates that any offer that is made would be financed from an issue of equity to Lamprell's shareholders and new debt facilities. It says that "a further announcement will be made if appropriate."

The MIS Group (Maritime Industrial Services) describes itself as a diversified engineering and contracting group providing a broad range of products and services to the oil, gas and energy sector. MIS was established in Dubai, UAE in 1979.

Lamprell has played a prominent role in the development of the offshore industry in the Arabian Gulf for over 30 years, and more recently providing specialized services to the onshore and offshore oil and gas industry that include new build design and construction of jack-up rigs, lift boats and tender barges. Lamprell's three primary facilities are in Port Khalid and the Hamriyah Free Zone, both which are in the Emirate of Sharjah in the United Arab Emirates, and in the Jebeli Ali Free Zone, in the Emirate of Dubai, also in the UAE.

April 7, 2011