Business
Rejection of Proposal from Seafox International
Rejection of Proposal from Seafox International.
About this update from Gulf Marine Services Plc
[{"type":"text","content":"\n \n \n RNS Number : 7856L\n Gulf Marine Services PLC\n 04 May 2020\n \n \n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\n \n \n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \n \n \n \n \n \n \n \n \n \n \n FOR IMMEDIATE RELEASE\n \n \n \n \n \n \n \n 4 May 2020\n \n \n \n \n \n \n \n Gulf Marine Services PLC\n Rejection of Proposal from Seafox International Limited (\"Seafox\")\n \n \n Following Seafox's announcement on 30 April 2020 of its unsolicited and non-binding approach to acquire the entire issued and to be issued share capital of Gulf Marine Services PLC (\"\n \n GMS\n \n \" or the \"\n \n Company\n \n \") (the \"\n \n Seafox Proposal\n \n \"), the Board has consulted widely with GMS's stakeholders and reviewed the Seafox Proposal with its financial advisers.\n \n \n The Board today confirms that it has unanimously rejected the Seafox Proposal for the reasons set out below. \n \n \n GMS is performing well\n \n \n · \n Management and the Board have been strengthened\n \n \n · \n The Company has been refocused and streamlined\n \n \n · \n New business has been successfully secured with eleven new contracts since the start of 2019 and the backlog stands at US$240 million\n \n \n · \n The cost base has been significantly reduced - the 2019 cost saving programme delivered US$13 million on an annualised basis against an original target of US$6 million\n \n \n · \n Adjusted EBITDA for Q1 2020 is ahead of the Company's 2020 Business Plan\n \n \n The Board is confident in future value creation as an independent company\n \n \n · \n 80% of the 2020 Business Plan revenues are covered by firm contracts, and this rises to 83% if contracted options are exercised\n \n \n · \n All available vessels in the fleet are currently contracted - secured utilisation for 2020 of 76% versus 69% in 2019\n \n \n · \n 2021 contracted utilisation already stands at 49%, which is significantly ahead of the 2020 utilisation (27%) at the same time last year \n \n \n · \n The cost savings programme has delivered further gains during 2020 and is currently running ahead of plan\n \n \n · \n In principle agre...