Salvage firm Smit Internationale may consider takeover bid
Smit Internationale, the biggest marine salvage company, may be heading for a takeover two months after rejecting a US$300 million bid for its oil tanker towing unit.
The shares, already lifted by record crude prices, have jumped 25 per cent since chief executive Ben Vree rebuffed the offer for Smit Terminals from Royal Boskalis Westminster, the world's largest dredging company, and a Saudi partner. The unit tows vessels to offshore oil and gas terminals.
Boskalis may want the Terminals unit enough to make an offer for all of Smit, said Herman Bots, an analyst at Theodoor Gilissen Bankiers in Amsterdam. A complete takeover would add 399 vessels and allow the rejected suitor to overtake Svitzer, part of A P Moeller-Maersk, as the owner of the world's largest tugboat fleet.
Rotterdam-based Smit is ready to hold talks, Mr Vree, 54, said in an interview. 'I would absolutely keep the terminals unit because it's an integrated part of Smit,' said Gerrit Jan ten Doesschate, who runs Fortis Investments' small Dutch companies fund in Amsterdam. 'We wouldn't rule out a takeover of the company,' he said.
As oil surged to a record, Smit has jumped 38 per cent in the past three months, compared with a 23 per cent increase in the Bloomberg Europe Oil & Gas Services Index. Smit is valued at 11 times estimated 2008 earnings per share, compared with 16 for France's Bourbon, owner of the world's biggest fleet of supply ships for deep-water oil exploration. The Paris-based company's shares have fallen 7 per cent this year.
Smit shares closed at a record 72.47 euros in Amsterdam trading on April 25, up 0.6 per cent.
Stephen Kusmierczak, who manages Columbia Wanger Asset Management's European Smaller Companies Fund in Chicago, said an offer for Smit could be above 80 euros.
Smit Terminals accounted for 12 per cent of the company's 2007 sales of 552 million euros (S$1.1 billion).
The shares, already lifted by record crude prices, have jumped 25 per cent since chief executive Ben Vree rebuffed the offer for Smit Terminals from Royal Boskalis Westminster, the world's largest dredging company, and a Saudi partner. The unit tows vessels to offshore oil and gas terminals.
Boskalis may want the Terminals unit enough to make an offer for all of Smit, said Herman Bots, an analyst at Theodoor Gilissen Bankiers in Amsterdam. A complete takeover would add 399 vessels and allow the rejected suitor to overtake Svitzer, part of A P Moeller-Maersk, as the owner of the world's largest tugboat fleet.
Rotterdam-based Smit is ready to hold talks, Mr Vree, 54, said in an interview. 'I would absolutely keep the terminals unit because it's an integrated part of Smit,' said Gerrit Jan ten Doesschate, who runs Fortis Investments' small Dutch companies fund in Amsterdam. 'We wouldn't rule out a takeover of the company,' he said.
As oil surged to a record, Smit has jumped 38 per cent in the past three months, compared with a 23 per cent increase in the Bloomberg Europe Oil & Gas Services Index. Smit is valued at 11 times estimated 2008 earnings per share, compared with 16 for France's Bourbon, owner of the world's biggest fleet of supply ships for deep-water oil exploration. The Paris-based company's shares have fallen 7 per cent this year.
Smit shares closed at a record 72.47 euros in Amsterdam trading on April 25, up 0.6 per cent.
Stephen Kusmierczak, who manages Columbia Wanger Asset Management's European Smaller Companies Fund in Chicago, said an offer for Smit could be above 80 euros.
Smit Terminals accounted for 12 per cent of the company's 2007 sales of 552 million euros (S$1.1 billion).