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A consortium of potential buyers has provided a loan to the cash-strapped UAE-based oil rig builder Lamprell Plc that will help it dodge bankruptcy and agreed to make a formal takeover offer of approximately GBP38.8 million ($46 million).
Blofeld Investment Management and AlGihaz Holding, which make up the consortium named Thunderball Investments Ltd., currently have a 45% combined shareholding in Lamprell. Following the takeover, Blofeld will have a 60% stake and AlGihaz a 40% stake.
The takeover offer from Thunderball Investments--which shareholders will receive within 28 days from today--also include a $145 million secured bridge finance facility to Lamprell, which will help the rig builder from filing for an insolvency by the end of July, according to a filing on the London Stock Exchange, where Lamprell’s shares trade.
The loan will terminate on the earlier of three months after the offer is declared unconditional, or three months after the offer lapses or is withdrawn.
The bridge will be available for drawdown in three tranches at 12% rate of interest.
Blofeld Investment Management is owned by Osama AlSayed, a controlling shareholder and the chairman of the Jeddah-based Asyad Holding Group. AlGihaz is a holding company based in Saudi Arabia with investments in infrastructure, renewable energy, healthcare etc.
Lamprell had said in June that it faces funding requirements of $75 million over the next two months. It had missed an initial $26.4 million milestone repayment on an $45 million UAE Export Credit Agency-backed revolving trade loan.
Thunderball Investments indicated that the core of Lamprell's business should be maintained in its Hamriyah and Jebel Ali locations in the UAE. It also intends to maintain the company's current headquarters in the emirates.
(Reporting by Brinda Darasha; editing by Daniel Luiz)