The shareholders of the Lamnalco Group, dredging group Royal Boskalis Westminster, and the Saudi Rezayat Group have issued a bid today (February 26) for the global oil and gas terminal services division of Smit Internationale.

The bid amounts to $300 million in cash. This amount corresponds to more than 20 times the profit of Smit Terminals, said an official spokesman.

Lamnalco shareholders believe that this bid offers ‘full and fair value’. The bid will be financed with a combination of existing cash resources and credit facilities. The bid is subject to the usual conditions for a transaction of this kind.

Smit Terminals and Lamnalco both have a leading position in the global market for specialised oil and gas terminal services. This is a rapidly expanding market driven by the rise in global demand for energy, and in particular liquified natural gas (LNG).

The combination will result in a world-class player with an excellent platform for further growth. The merger of the two players is a natural step from the strategic, operational, commercial and financial perspectives.

The combined companies will have an annual turnover of more than $280 million, and will operate in more than 25 countries on five continents. The share of the global market will be approximately 40 per cent.

Both Lamnalco and Smit Terminals have acquired stable market positions by means of the quality and professionalism of their workforces. – TradeArabia News Service