OSLO - Malaysian offshore oil services firm Yinson Holdings Bhd is bidding $170 million for Norwegian shipping firm Fred. Olsen Production and has secured a majority of the shares in the company, the firms said on Monday.
Yinson Holdings Bhd, whose subsidiaries provide offshore, supply and logistics services to oil companies in South East Asia, is offering 9.40 per share, valuing the company at 996 million Norwegian crowns, or $170 million.
The board of Fred. Olsen Production, which owns and operates three ships for oil and gas production at offshore fields, has endorsed the offer, which is five percent higher than the stock's close on Friday.
On Monday its shares were up 4.59 percent at 0716 GMT, outperforming an Oslo benchmark index up 0.25 percent.
The offer comes after Fred. Olsen Production sought several bids following a strategic re-evaluation of its activities announced last October. It did not disclose who else made offers.
"The offer represents the best offer received as a consequence of this comprehensive process," Fred. Olsen Production said in a statement.
The Malaysian firm has secured consent for the bid equivalent to 61.54 percent of the shares in Fred. Olsen Production, it said.
Reporting by Gwladys Fouche; Editing by Balazs Koranyi (c) Reuters, 2013.
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